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Accomodation expenses

Accomodation expenses

I have a client who has been offered a role as an employee for a company that they have been doing some consultancy work for. They are currently trading through there own Limited company and because they are working in the Midlands (they live in devon) they have been claimimg accomodation costs against there income. Now they have offered her 'a great deal' she would like to know if she can offset some of the accomodation costs against her Employment Income?

The employer will not pay for this separately, your advice would be much appreciated.


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By ACDWebb
17th May 2012 07:59

It seems unlikely
Presumably her base would become the business address in the Midlands

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17th May 2012 09:47


Whilst employed by her own company, presumably based at her home in Devon which would be her permanent workplace, her company's decision to send her to the Midlands to work for the client would make the Midlands a temporary workplace and she is entitled to claim all travel expenses, including accommodation and subsistence, in the Midlands, at least up to the point where the placement is expected to exceed 24 months.

If she becomes an employee of a company in the Midlands (and stops working as an employee of her own company in Devon), the Midlands becomes her permanent workplace and all travel expenses incurred in getting there are disallowable as regular commuting.

Chapter 3 of Booklet 490 is the place to look for guidance.

Thanks (1)
17th May 2012 10:29

If the employer can be persuaded to pay or reimburse it...

... perhaps under a salary sacrifice arrangement, you could possibly structure it so that it falls within the exemption for relocation expenses.

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