Claiming back rent whilst self employed

Millzy

Hi all, I am self employed living in Bristol but often work away in London. During these times I have to rent a Monday to Friday flat, as well as pay a mortgage in Bristol. I have been given conflicting information about whether I can claim this back on my tax return or not - any information I can get on how I can save in regards to this would be very helpful.

Nicola_Ed

The answer is it depends! See the link below


http://www.hmrc.gov.uk/manuals/bimmanual/BIM37670.htm


If you read the two sentences in red you can only claim relief if not "at the base of business operations" Why do you need to be in London?


Overnight accommodation and subsistence

Where a business trip necessitates one or more nights away from home, the hotel accommodation and reasonable costs of overnight subsistence are deductible. See Edwards v Warmsley Henshall and Co [1967] 44 TC 431 (see BIM37615) and Watkis v Ashford, Sparkes and Harward [1985] 58 TC 468 (see BIM37925).
This does not extend to overnight accommodation and subsistence at the base of business operations, even if there is a contractual requirement for the trader to reside in a particular place. See Mason v Tyson [1980] 53 TC 333 (see BIM37928), Prior v Saunders [1993] 66 TC 210 (see BIM37665), Mclaren v Mumford [1996] 69 TC 173 (see BIM37930) and BIM66210.
The reasonable costs of meals taken in conjunction with overnight accommodation are allowable, whether or not paid on the same bill.

Skint_yet_Again

I was reading Healy v HMRC. Does anyone know if this has any bearing on OP's question ?

http://www.tribunals.gov.uk/financeandtax/Documents/decisions/hmrc-v-tim-healy.pdf

http://www.taxinsider.co.uk/1028-Self_Employed_and_Working_Away_from_Home_Read_On.html