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  • FIRST POST
    • Kokolot
    • By Kokolot 4th Jan 18, 10:56 PM
    • 16Posts
    • 1Thanks
    Kokolot
    Contracting question: Can I claim hotel and dinner expense for 6 month contract?
    • #1
    • 4th Jan 18, 10:56 PM
    Contracting question: Can I claim hotel and dinner expense for 6 month contract? 4th Jan 18 at 10:56 PM
    Hello all,

    I am new to contracting so seek advice from experienced contractors here or accountants who can advice.

    I have a 6 month work contract:

    > The work location is 85 miles away from my home
    >The commute can take 2hrs to 2 and half hours each way so 4-5hrs in total each day
    >My work day is usual 9am-5.30pm
    >Work from home once a week

    Doing this type of long commute may be bad for my health so I was thinking, is it possible to claim hotel expense to stay near the work location every week until my contract ends and claim the hotel + dinner as an expense?

    > I will make lunch at home.
    > The hotel will cost no more than probably 75 a night

    >I will be working through my own LTD company
    >My contract is Outside IR35.

    Can anyone please advice?

    Of course I will ask my accountant but wish to ask other experienced here as well.
Page 1
    • MataNui
    • By MataNui 5th Jan 18, 8:32 AM
    • 958 Posts
    • 521 Thanks
    MataNui
    • #2
    • 5th Jan 18, 8:32 AM
    • #2
    • 5th Jan 18, 8:32 AM
    Yes. That would be a pretty average situation for a contractor. Its what i used to do for years. You might want to try to reduce the cost a bit though. After all its actually all your money in the end. You may be able to get a contractor rate (can work out cheaper) or what i used to do was book a couple of weeks in advance by trawling for the best rates (i did tend to stick with the one hotel though). Got some really good deals some weeks (particularly around Christmas).

    #Edit# You can also claim mileage so dont forget that. It can make a big difference.
    Last edited by MataNui; 05-01-2018 at 8:35 AM.
    • trailingspouse
    • By trailingspouse 5th Jan 18, 8:35 AM
    • 2,680 Posts
    • 4,369 Thanks
    trailingspouse
    • #3
    • 5th Jan 18, 8:35 AM
    • #3
    • 5th Jan 18, 8:35 AM
    Can you claim for the cost of a hotel/subsistence/mileage from your client? You would have to ask them - no-one on here will be able to answer that question. It's common practice (certainly in the industry we work in) for the client to pay for airfares/hotels when the contract is outside the UK, less common to pay that sort of thing within the UK. You need to make sure that your daily rate is sufficient to cover these costs.

    Can you claim for the cost of a hotel/subsistence/mileage tax free from your own limited company? Yes you can - keep all your receipts and put them through your books as business expenses. And you should contact the reservations team at your hotel and ask if they have a corporate rate that they can offer you. It's sometimes worth mentioning who you are working for, as the hotel is likely to give you the same corporate rate as they offer your client.
    • bugslet
    • By bugslet 5th Jan 18, 9:09 AM
    • 6,153 Posts
    • 29,605 Thanks
    bugslet
    • #4
    • 5th Jan 18, 9:09 AM
    • #4
    • 5th Jan 18, 9:09 AM
    When my OH worked away, he rented a room from someone working on the same site as him, which back in 2000, cost around 70.00 a week.

    mondaytofriday.com offer rooms to let on a weekday only basis, might be worth a look.
    • Kokolot
    • By Kokolot 5th Jan 18, 10:10 AM
    • 16 Posts
    • 1 Thanks
    Kokolot
    • #5
    • 5th Jan 18, 10:10 AM
    • #5
    • 5th Jan 18, 10:10 AM
    Hello all,

    Thank you for your replies.

    I cannot get the customer to pay for this, I asked.

    Would this be OK to do every week until my contract ends?

    There is a local Travelodge which averages around 60 a day inc breakfast.
    • getmore4less
    • By getmore4less 5th Jan 18, 10:50 AM
    • 32,185 Posts
    • 19,344 Thanks
    getmore4less
    • #6
    • 5th Jan 18, 10:50 AM
    • #6
    • 5th Jan 18, 10:50 AM
    Bottom line with a daily rate is what you spend is your money so you decide what level you want.

    Shopping around booking in advance and negotiating can all cut costs.
    you decide on travel days and over nights as needed.

    broaden the search to those very local to work, there may be some places that offer better value/facilities/location.

    Join the loyalty schemes you can soon rack up benefits and get offers.


    Also consider your evenings it can get very tedious being in hotels if you can't work late to use up time and get in late/off early on travel days

    A place near things so you can go out does wonders for moral.

    When I contracted I found a mix of Wetherspoons(or similar) for day to day sustenance was fine with the occasional better meal thrown in, I was away 5-7 days most of the time.

    As you have a work from home day can you pick the day?
    some prefer a split week overnight Mon,Thurs(work from home Wed), some prefer the longer weekend eg. being home Friday evening rather than travelling.
    • easy
    • By easy 5th Jan 18, 10:56 AM
    • 2,312 Posts
    • 2,714 Thanks
    easy
    • #7
    • 5th Jan 18, 10:56 AM
    • #7
    • 5th Jan 18, 10:56 AM
    You can claim hotel and meal expenses for working away at a single location for up to 24 months with no problems at all. After 24 months HMRC could argue that the location has become your regular place of work,
    I try not to get too stressed out on the forum. I won't argue, i'll just leave a thread if you don't like what I say.
    • TELLIT01
    • By TELLIT01 5th Jan 18, 11:02 AM
    • 5,011 Posts
    • 5,428 Thanks
    TELLIT01
    • #8
    • 5th Jan 18, 11:02 AM
    • #8
    • 5th Jan 18, 11:02 AM
    The rate quoted to the customer should have either included all your expenses, or the contract should have stated that accommodation and food costs would be added. As the OP doesn't appear to have done either of these it's likely to be an expensive lesson in the price of being self-employed.
    • Kokolot
    • By Kokolot 5th Jan 18, 11:29 AM
    • 16 Posts
    • 1 Thanks
    Kokolot
    • #9
    • 5th Jan 18, 11:29 AM
    • #9
    • 5th Jan 18, 11:29 AM
    Hi,

    I work from home on Fridays.

    My daily rate is 400.

    Yes this is my first contracting experience and I realise I might make mistakes but this is why I ask and wish to learn.

    I suppose with my daily rate and the fact that I will not be on this contract longer than 24 months means I can stay in a hotel, claim meal expenses, and mileage?
    • PasturesNew
    • By PasturesNew 5th Jan 18, 11:38 AM
    • 62,790 Posts
    • 367,933 Thanks
    PasturesNew
    I did it for 6 months, but I wasn't spending that much on a hotel. I used small/private hotels and B&Bs - the sort of places with 1970s wallpaper, avocado shower suites and no bedside lamp/coffee making But they were about 20/night.

    It's OK to claim, but if the sum of your expenses claim and other contracting costs reduces your salary below NMW then you will be paid NMW first and then "the balance" in expenses.
    • unforeseen
    • By unforeseen 5th Jan 18, 12:28 PM
    • 2,663 Posts
    • 3,409 Thanks
    unforeseen
    NMW doesn't apply where the employee is a director
    • gettingtheresometime
    • By gettingtheresometime 5th Jan 18, 12:53 PM
    • 3,710 Posts
    • 9,185 Thanks
    gettingtheresometime
    Hi,

    I work from home on Fridays.

    My daily rate is 400.

    Yes this is my first contracting experience and I realise I might make mistakes but this is why I ask and wish to learn.

    I suppose with my daily rate and the fact that I will not be on this contract longer than 24 months means I can stay in a hotel, claim meal expenses, and mileage?
    Originally posted by Kokolot
    What have you agreed with your client?


    you can claim anything you want but if the client didn't agree to pay it at the start of the contract then I doubt very much it will get paid.
    Lloyds OD / Natwest OD / PO CC / Wescott / Argos Card cleared thanks to the 1 debt v 100 day challenge


    Next on the list - JD Williams
    • MataNui
    • By MataNui 5th Jan 18, 1:37 PM
    • 958 Posts
    • 521 Thanks
    MataNui
    Perhaps the question wasnt worded explicitly since in your situation there are a variety of interpretations of the words 'can i claim'. You obviously cant claim from your client unless that was previously agreed. But.....

    You can pay for it personally then claim from your ltd company who will claim it as a tax deductible expense.
    Your company can pay for it directly and claim it as a tax deductible expense.

    You can also claim mileage (45p per mile up to a limit) from your ltd company and then your ltd company will claim that as a tax deductible expense. Remember that it is really all your money in practical terms so there is no point spending more on accommodation than you need to.

    400 per day seems a really good rate for someone with no contracting experience at all so you seem to be onto a pretty good gig there.
    • trailingspouse
    • By trailingspouse 5th Jan 18, 2:54 PM
    • 2,680 Posts
    • 4,369 Thanks
    trailingspouse
    The key thing to keep in mind is that you, 'Mr Kokolot', are a different entity from your limited company - 'Kokolot Ltd'.

    So - your client/customer needs some work doing and they employ Kokolot Ltd to do the work. Kokolot Ltd send their best bloke - Mr Kokolot - to do the work. Mr Kokolot needs to stay in a hotel, eat, and drive to the client site, so Kokolot Ltd agree to pay his expenses to do this. Mr Kokolot keeps his receipts and tells Kokolot Ltd how much they owe him, say at the end of every month. Kokolot Ltd give him the money. In turn Kokolot Ltd can put these costs through as tax deductible expenses. And, if Kokolot Ltd are VAT registered, they can claim the VAT back too.

    The fact that you are both Mr Kokolot and Kokolot Ltd is neither here nor there.

    All the best with the contracting - we've been doing it for nearly 7 years now, best decision we ever made.

    Edited to add: speak to an accountant, as there are lots of other things you can claim for.
    • Kokolot
    • By Kokolot 5th Jan 18, 3:08 PM
    • 16 Posts
    • 1 Thanks
    Kokolot
    Thank you trailingspouse this is why I joined this forum so I could understand from people (and the other posters above)
    • motorguy
    • By motorguy 6th Jan 18, 7:01 PM
    • 16,750 Posts
    • 9,934 Thanks
    motorguy
    The rate quoted to the customer should have either included all your expenses, or the contract should have stated that accommodation and food costs would be added. As the OP doesn't appear to have done either of these it's likely to be an expensive lesson in the price of being self-employed.
    Originally posted by TELLIT01
    The O/P has already told us he cant reclaim it from the client, so theres no "expensive lesson" to be learnt.

    If hes doing it right, hes getting a very significant day rate that facilitates costs like this. His only question is whether he can recover the costs through his business thus save on tax.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • motorguy
    • By motorguy 6th Jan 18, 7:03 PM
    • 16,750 Posts
    • 9,934 Thanks
    motorguy
    Hi,

    I work from home on Fridays.

    My daily rate is 400.

    Yes this is my first contracting experience and I realise I might make mistakes but this is why I ask and wish to learn.

    I suppose with my daily rate and the fact that I will not be on this contract longer than 24 months means I can stay in a hotel, claim meal expenses, and mileage?
    Originally posted by Kokolot
    Get yourself over to forums.contractoruk.com

    Loads of useful information there.

    As has been said, yes you can claim back hotel, subsistence, evening meal charges and mileage against your company and thus reduce your tax bill.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • motorguy
    • By motorguy 6th Jan 18, 7:04 PM
    • 16,750 Posts
    • 9,934 Thanks
    motorguy
    Edited to add: speak to an accountant, as there are lots of other things you can claim for.
    Originally posted by trailingspouse
    Wholly this - my accountant is worth his weight in gold in terms of what he has saved me.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • Kokolot
    • By Kokolot 31st Jan 18, 9:37 PM
    • 16 Posts
    • 1 Thanks
    Kokolot
    Hi,

    I am still getting my head around expenses with my LTD company.

    Is expenses such as hotel, lunch, dinner, breakfast good in making savings in taxes?

    I am trying to understand whether it's better to claim expenses in stopping the tax man getting it, or whether it's better to claim less as you can because it is more money in your pocket?

    Please explain.
    • gettingtheresometime
    • By gettingtheresometime 31st Jan 18, 10:10 PM
    • 3,710 Posts
    • 9,185 Thanks
    gettingtheresometime
    Hi,

    I am still getting my head around expenses with my LTD company.

    Is expenses such as hotel, lunch, dinner, breakfast good in making savings in taxes?

    I am trying to understand whether it's better to claim expenses in stopping the tax man getting it, or whether it's better to claim less as you can because it is more money in your pocket?

    Please explain.
    Originally posted by Kokolot
    Have you got an accountant yet? Seriously they will help you far more
    & should save you more money than their fees
    Lloyds OD / Natwest OD / PO CC / Wescott / Argos Card cleared thanks to the 1 debt v 100 day challenge


    Next on the list - JD Williams
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