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Hotel expenses for prolonged period

Are they allowed?

Hello,

Just looking for clarification... can a business claim hotel expenses for sending an employee several hundred miles away, 3 nights per week for 2 years? I think yes but wanted to check as I know if you rent a property for a staff member to stay in that after 2 years, that is deemed 'home' and not a tax deductible expense.

Where are the right places on HMRC to look to find guidelines on things like this?! It always seems impossible to find clarification from them in my efforts!

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13th Feb 2018 14:00

Well Kate, you are looking for the temporary place of work rules which its in the employment manual. Don't know the tax act off the top of my head but the primary legislation is usually referenced from HMRC's manuals so you can find the right bit. There are also quite a few cases in this area to look at.

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13th Feb 2018 14:02

If the business is paying them for the employee, then the business can claim them. Indefinitely.

They are a travel expense like any other, so if the workplace is a temporary workplace, then there's no net benefit to to be taxed on the employee.

There comes a point at which it will cease to be a temporary workplace though, and become a permanent workplace. That point cannot be more than two years from starting at the workplace, but it might be before that.

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