Claim flat as expense?

nrsql

I'm self employed with a limited company.
I've just rented out my house and rented a flat near work (saves time and travel expenses) for 3 months initially.
I also have another house which I live in at w/ends (well - when I'm not working).

How do I stand for claiming the flat rental as an expense through the company?
My accountant says no but I don't think I mentioned the other house which could be considered my main residence (how's that defined?).

telly-addict

If you have a limited company and you are a director of it, then you are not self-employed, you are an employee.

Accountant is correct - you could only claim expenses of the flat if it was where you were working, it is a personal expense and is not wholly and exclusively for the purposes of your business.

Your main residence is either your only property or the one where you spend most of your time or the one you have elected to be your main residence.

nrsql

OK I'm not self employed in this instance.
Well - I'm only renting the flat because it's not convenient to commute from my other home so it is for the purpose of my business but not exclusively - unless not having anywhere to sleep and so not being capable of work counts. If I was working nearer home I wouldn't need it.
I think of it more like a hotel (which I always do claim as an expense). In fact if I can't claim this then I suspect a hotel would work out cheaper.

cash99

Presumably you are a contractor of some kind to have this setup. As such you potentially can get tax relief if you qualify under the temporary workplace rules for travel expenses, in much the same way that you do for hotel expenses. The rules are detailed, but if you apply your circumstances to the rules you should be able to come up with an answer.

You would only be able to claim this expense if you still maintain a permanent home.

Check telly-adicts post on this thread for more details. http://forums.moneysavingexpert.com/showthread.html?t=63616

Cook_County

and at least travel expenses are IR35 proof...

nrsql

>> and at least travel expenses are IR35 proof...
spit, gnash

at least I'm not close to being caught by this, I don't think - but who knows?

What's a "permanent home".
At least with working abroad the rules are fairly clear.

nrsql

The link is all about travel expenses which is not a problem - I was claiming that. Useful as I work abroad a fair bit.
That's the reason for giving up the house - I either work in London or abroad (it seems). I have a place in the provinces so a rented flat with a short term get out clause (3 mth) seemed a good idea - so it's useful if I spend a lot of time in the city which I'm doing at the moment.

cash99

If you are eligible for travel expenses under the rules you are also eligible for temporary accomodation. As you say if you can calim for staying in a hotel, then there is no problem claiming for a flat.

There is no exact definition of permanent accommodation, but it would be the place you stay at the weekends, pay your council tax, and plan to live at permanently once the contract expires. In your OP you say that you have rented out your home, but have another one you can use. This certainly clouds the issue as it looks like you have moved your home to be near work, rather than taken temporary accomodation.

I expect the tax involved is significant so a more detailed chat with your accountant could be in order.

Cook_County

I see you work abroad a great deal. What is the tax position in the country(ies) you work in? I can't see any point paying less UK tax if you owe more tax elsewhere. Where do you work when you are abroad?

nrsql

Depends on what's going on.
USA, Germany, Luxembourg recently (well not that recently).