I have to stay away one night a week with work so I don't have to relocate. I pay for a B&B each week and food, can I offset this against my tax? My wages are done via work so I don't do my own tax returns.

I believe you can file your own tax return at the end of the financial year, even if you get paid via PAYE. Whether you'll be able to claim the B&B and travel expenses or not, I have no idea. Yes if you're a self employed contractor, possibly if you're a PAYE employee.

Can't you claim the expenses from work ?

I have to stay away one night a week with work so I don't have to relocate. I pay for a B&B each week and food, can I offset this against my tax? My wages are done via work so I don't do my own tax returns.

 

I doubt it, as its classed as a business expense. You should be able to claim it back from your company, who will claim the vat back on it.

 

The company I work for, we have to stay away alot and I have a company credit card (just because of the amount spent) but if I didnt I would have to spend my own money and submit the receipts and get a refund, where as now I just submit the receipts and they claim the vat back.

 

Unless you get the B&B to invoice the company direct (if they will you/company credit)

so i take it if you didnt stay away from home you would have to relocate as part of your job ?..in that case its a self imposed expense and not tax deductable or reclaimable against business expenses.

so i take it if you didn't stay away from home you would have to relocate as part of your job ?..in that case its a self imposed expense and not tax deductible or reclaimable against business expenses.

 

Agreed.... there are lots of rules about this.... but as Kaza said, if its the same place all the time (i.e. your regular place of work) then no. If you were being sent to different locations by your work that would be different and it would be a yes (for both travel and accommodation expenses, however the travel would most likely be from your place of work to the location of the job).

The office is located in Luton and I have to spend 2 days a week there, can't claim it back from work. If I lived in Luton I would be there 5 days a week so in essence its my choice to be away but wondered if I can claim it back as an expense?

I can't see how, you are better off talking to a tax adviser....

 

I'm a contractor and work in Cardiff but live in Devon, I've been doing the commute for 16 years (to the same place) but varied days (i.e. shift pattern).

AND no I can't claim anything!

Nothing you can do then really if your work won't pay for it! As I said the only way to claim it would be if your company would allow you to claim for it, my office is in glasgow, I do go up there maybe once every couple of months and I claim that. (Along with every other night away!)

 

Only think you can do is find a cheap B&B and perhaps do a deal with them. I'm sure they would do you a discount for a continuous booking, especially through the off season.

I have to stay away one night a week with work so I don't have to relocate. I pay for a B&B each week and food, can I offset this against my tax? My wages are done via work so I don't do my own tax returns.

 

Yes, mate - You can claim your accommodation, subsistence and travel costs (45p per mile since April 6th of this year, 40p previously, would probably be the best way for you) incurred for the time when you are working away. As long as there is no compensation from your employer for any of these. Keep receipts and fill in a tax return (you'll need your P60 details to complete the employment section) and you'll get a small refund. You can also claim any entertainment costs as long as these are essential for your work.............

Probably should add you'll get a refund as long as they haven't c@cked up your PAYE code! ;)

Yes, mate - You can claim your accommodation, subsistence and travel costs (45p per mile since April 6th of this year, 40p previously, would probably be the best way for you) incurred for the time when you are working away. As long as there is no compensation from your employer for any of these. Keep receipts and fill in a tax return (you'll need your P60 details to complete the employment section) and you'll get a small refund. You can also claim any entertainment costs as long as these are essential for your work.............

 

Can't see it myself - we're not talking about business travel, this is a regular journey due to not wishing to relocate... I'm certain this would be classed as commuting and therefore none of those would be allowable; subsistence is definitely only allowed if you are working at variable locations.

 

and as for entertainment costs?! Having had an investigation at a previous company, I wouldn't even bother trying that one!

I dont think you'd get it.

Would you get it from going to work round the corner from your house?

 

I'd ask a tax advisor tho, worth a try.

All good points raised above; but no-one has asked the crucial question.......

 

.....what does it say in your employment contract about where your regular place of work is? If your regular place of work is your home or a regional office local to you then any journey you make to another location, no matter how often, (well not if it's virtually every day!!) would be classed by HM Revenue & Customs as a business journey.

 

Generally speaking you would only have one regular place of work - people who work regularly at multiple locations (such as DIFFERENT clients' premises on a day to day basis) for the vast majority of the time will be classed as working from home - so when they visit any client it can qualify as a business journey.

 

So assuming your journeys to the Luton office do qualify as business related from what I've said above, then the associated overnight accommodation would also qualify. To be a business expense, it must be WHOLLY, EXCLUSIVELY AND NECESSARY for business purposes (HMRC rules again - and yes it must be all 3). Therefore your overnight lodgings may be wholly & exclusively business - because you're not enjoying any personal benefit from it. But is it necessary? You can argue yes, owing to the length of your journey and the working day (think EC working time regulations; health & safety etc - IE is it safe for you to do an 8 hour shift, with an 3 extra hours drive each way on top?).

 

Your company may have said they will not pay, but that does not prevent you claiming the expenses against your earnings. You may be under PAYE but you can still prepare a tax return each year; there is a box to fill in for any business related expenditure you incur in the course of your employment (that is paid employment under schedule E which is separate from self employment). And it's self assessment, so you make the claim. If HMRC question it you can state your case from what I have said above - if they don't agree they will not allow the claim and if they do, you get the tax back and/or have your tax code amended for the extra costs you incur.

 

As for how I know - I'm an accountant by profession - although I left public practice a few years back so I'm a bit rusty on the current section numbers etc. However I do keep my hand in a little - I still do accounts related work but as FD for a private company. I have to know a fair bit about tax regs to manage the company's finances and deal with tax and employment matters for my own staff!

 

If you need anything explained further, drop me a PM....

 

Richard:thumbup1:

Us at the tax office have been told that no one is to get any monies for the next twelve weeks, as we have all been put on to postal duties, because there is a back log of paper work for six months. This means that even if you are owed money it will be held up for the longest time possible so that the present people in power will gain over ten million in intrest in this period. Also any claim under five thousand is being let slip through to speed up the process, and only one claim in one thousand is being investigated at the moment so I'd give the ball a kick anyhow, its not my money.