Contractor accommodation expenses

Contractor accommodation expenses

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I have a new contractor client operating through a limited company outside IR35.

The business is registered at his parents' home which is his permanent residence.  

His contract requires him to spend time in London which is about 200 miles away, so he can't reasonably travel there every day.  He therefore spend Monday to Thursday nights in London (rents a room in a house) and returns home every weekend.  The contract isn't expected to exceed two years.

He argues that he his accommodation costs and expenses to travel to London each week are wholly business expenses as they are incurred solely to allow the company to service the contract.

I can see this argument.  However I can also see the argument that his London room is now his home and the rent/travel expenses shouldn't be claimed.  

At the end of the day it's his judgement.

What's your gut feel though?

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By girlofwight
01st Oct 2014 14:23

Broadly speaking the 24 month temporary workplace rule should apply to relieve the expenses.

Caveat to make sure that previous workplace wasn't substantially the same.

An issue arises if his limited company is to be one contract only - there is then no "temporary" workplace.  Difficult to police this one, I would suggest best expectations on clients part.

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