24 Month Rule with Temp residence in UK

[macgabhr]

Hello,

I am about to undertake a one year contract in the UK. I am currently a resident in the REP of Ireland. I have set up a limited company and my accountant informs me that even if I am living in the UK as long as I travel back home to my residence in the ROI I may be able to write accommodation expenses off my tax bill as long as I fall under the 24 month category. It seems like a bit of a grey area to me but as far as the account is concerned he reckons once I am going back say once a month or so and that my immediate family are still in ROI and im not living with any of them in the UK the hrmc will view this as acceptable and I should be able to write accom costs against tax. I just want clear this up prior to doing anything so any help on or experience on the matter would be great.

Thanks

Mac

[northernladuk]

Maybe I am missing something here but a one year contract is less than 24 months so how can a rule apply that isn't going to kick in for another year???

Are you talking about what would happen in the future if you got more roles in the UK?

[malvolio]

Maybe I am missing something here but a one year contract is less than 24 months so how can a rule apply that isn't going to kick in for another year???

Are you talking about what would happen in the future if you got more roles in the UK?

More to the point, it's a UK rule regarding personal Benfits in Kind (and not a very good one at that), and I assume you'll stay a ROI Taxpayer, so it won't apply anyway.

It is a valid business expense anyway, and therefore offsettable against YourCo's Corporation Tax regardless. If your accountant doesn't understand that minor detail, perhaps you need a better one...

[macgabhr]

More to the point, it's a UK rule regarding personal Benfits in Kind (and not a very good one at that), and I assume you'll stay a ROI Taxpayer, so it won't apply anyway.

It is a valid business expense anyway, and therefore offsettable against YourCo's Corporation Tax regardless. If your accountant doesn't understand that minor detail, perhaps you need a better one...

The company will be registered in the UK and I will be paying tax in the UK. I just want to know if I wasnt traveling back to Ireland on a regular basis would I be able to claim accom expenses or more to the point how often do I need to be traveling home to please the HRMC etc..it seems like a very grey area

[malvolio]

The company will be registered in the UK and I will be paying tax in the UK. I just want to know if I wasnt traveling back to Ireland on a regular basis would I be able to claim accom expenses or more to the point how often do I need to be traveling home to please the HRMC etc..it seems like a very grey area

Not that grey, the rules over UK tax residency are quite explicit. HoweverI don't think that's what you're asking...

The cost of YourCo having you over here is a business expnses that it should be paying for, ither directly (which is the sensible option) or by reimbursing your personal expenditure (which is labour intensive and unnecessary, IMHO). If, however, you know you are going to be at the temporary workplace more than two years, you have to pay personal tax on the costs since it is then treated as a Benefit in Kind.

So if I understand your OP correctly, there's no problem in YourCo paying your reasonable living costs over here.