What can you write off against tax while on PAYE?

mhamill_2

Hi - I have a couple of questions but first let me outline my situation:

I am a full time employee on PAYE. My home office is in Surrey although for some time I worked overseas. I returned to the UK in April 06. I live in Northern Ireland (i.e. UK) and essentially commute on a weekly basis to England, flights and accommodation during the week cost approx 12k per year. My first question is can I write any of this cost of against tax? My understanding is no, but no harm in asking!

Secondly, on arrival in back in UK my company asked me to go on temporary assignment to a location in Middlesex. This 'temporary' assignment was initially for 6 months but has been extended to 18 months. Because I live in Ireland this move did not affect my situation much, I'm still flying to same airport and just have rented a room in Middlesex rather than Surrey. Is there any way this could be used as a tax advantage?

Thanks.

My understanding is that the only way I can make my current situation work more efficently taxwise would be to resign from full time employment and ask my company to take me back as a contractor (+ set up my own ltd company). That seems like such big move, with a whole new set of problems, so I have been reluctant to do it, however, maybe it is the most sensible for tax.....

Any advice welcomed. Thanks again!

fengirl_2

You are correct in saying that travel to and from work is not tax deductable.
Regarding the 'temporary' office in Middx, an employer would normally foot the additional cost of either communting to Middx, or pay for the rent of the room in that area. Are you retaining your accommodation in Surrey? If so, have you asked them to meet this additonal cost?
Getting sacked and being taken on for the same role as self employed is very dubious and your employer would need the arrangements to be water tight for them to avoid a charge of treating you as self employed incorrectly, so they would probably want to discuss this with their advisors. As you have identified, there would be issues for you with this arrangement - no more paid holidays, sick pay, maternity/paternity, etc

mhamill_2

Many thanks Fengirl
You are confirming what I thought. As I'm not retaining accommodation in Surrey my employer is not paying my rent in Middlesex. They did give me some compensation to cover costs of moving.
I think Contracting work would be beneficial for me to allow me to write off the 12k travel and accomodation costs. I take your point that to do this with my current employer could be a problem. And of course there are the other issues to consider, holidays, sick pay, pension, etc.
What I really need to do is find a job at home!

cleopatra4485

Hi I am a contractor and I use an Umbrella Company. Which is easier than setting up your own limited company.

I am just about to use a company called Atlantic, but there is a site that lists and reviews them before you choose one

Linky