Expense claim for non resident

Expense claim for non resident

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Client is a UK citizen and has been non resident from UK for many years in Mexico

He has come to UK to take up a consultancy position for a major UK plc via a UK registered Limited company of which he is a director. Given that he is renting a flat and incurring other living and incidental expenses and that he is non resident would it be possible to claim for the flat and other costs on the basis that he has to incur this expenditure in order to perform his duties against the Ltd Corporation tax.  The flat is rented in his own personal name. If he does would this be problem P11D wise

many thanks

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Euan's picture
By Euan MacLennan
01st Dec 2011 10:27

What makes you think he is non-resident?

If he has come to the UK to work and has rented a flat as accommodation in the UK, he is probably now resident in the UK.  Has he completed a form P86 and submitted it to HMRC?

If he is UK resident, then like the rest of us, he would not be entitled to any tax relief for his rent or living expenses.  He might conceivably be entitled to travel between his flat and the offices of the UK plc on the grounds that his permanent workplace as an employee of his own company is his home address and that the offices of the UK plc are a temporary workplace for a period not expected to exceed 24 months, but in the circumstances, I think that the offices of the UK plc are his permanent workplace and there is no tax relief for regular commuting.

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