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Expense as a contractor

 
forum comment
#0 Expense as a contractor
 
Freelancer
12.11.10 00:00
 
Hi All,I am about to accept a contract in Manchester however, I am based on London and my limited company registered office is in London as well.I am thinking to either use hotel or B&B for the duration of 6 months to work on this contract. Can I put these accomodation expenses plus food and travel through my limited company's account?Please could you shed some light on above query?RegardsFreelancer
 
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forum comment
#0 RE: Expense as a contractor
 
anon
13.11.10 00:00
 
If your question is whether you can treat these expenses as costs of doing business for tax purposes, then yes you can.<i> Usual caveats: this is not tax advice, consult your accountant or other tax advisor before making any decision </i>
 
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forum comment
#0 RE: RE: Expense as a contractor
 
OP
13.11.10 00:00
 
Does it mean I can claim accomodation, food and travel expenses from my business account ( since I will be living in a remote location than my main home/ company&apos;s registered address) irrespective of whether I am in or out of IR35? RegardsOP
 
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#0 RE: RE: RE: Expense as a contractor
 
qq
13.11.10 00:00
 
Yes. They are wholly and exclusively for business purposes so are costs of doing business. This is regardless of IR35 status.After a period (say 2 years) there is a risk it looks like a second home. However for 6 months no problem.
 
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#0 RE: RE: RE: RE: Expense as a contractor
 
Contractor
15.11.10 00:00
 
I&apos;d check with an accountant before doing anything (the HMRC are not known for being gentle even for genuine mistakes!)Travel = definitely OKFood = definitely not OK (HMRC rationale is that you would need to eat to live wherever you work - you can&apos;t deduct this from tax just because you are eating elsewhere).Accomodation - grey area (may follow same rationale as food i.e. you could rent elsewehere for the duration of your contract but am not sure - if it sounds impractical to do, that&apos;s because if probably is but HMRC aren&apos;t known for being nice/practical - definitely check first!)Seriously - check anything with an accountant first otherwise you may end up wiith serious problems and if your limited company is your means of working then you&apos;d be better asking for professional advice before jeopardising it / being struck off as a director. HMRC website has a few do&apos;s and don&apos;ts that may be worth reading if you don&apos;t want to pay for proessional advice first.
 
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