IT Contracting & Hotel Costs?

Styles · 17 Dec 2012 at 19:24

Hi all,

I've been looking through various sites on the Internet but I can't seem to find any concrete information on what to do with hotel costs when contracting. Say if you were staying in a hotel Mon-Fri for £500, what would you normally do with this £500 expense? Also, what happens with meals in the evening etc?

If anyone can help or point me in the direction of a clear answer that would be much appreciated!

Thanks,

Adam

[TW]Fox · 17 Dec 2012 at 19:29

It's an expense of your business. Therefore you can offset it against tax.

Whether or not you can charge it against your client depends on the details of the contract you have with them.

Greebo · 17 Dec 2012 at 19:29

In what respect? As far as HMRC goes or the person you are contracting for?

Greebo · 17 Dec 2012 at 19:30

Damn Fox beat me like a ginger step child

Styles · 17 Dec 2012 at 19:37

Thanks for the replies. What about evenings meals, incidental expenses etc? Can I offset these against tax?

Teledude · 17 Dec 2012 at 19:56

Speak to an accountant

Its very dependent on how your contract etc are worded

mattyfez · 17 Dec 2012 at 19:57

Depends on your personal set up - are you LTD, umbrella?

Basicaly can offset it against your tax allowance.

Ev0 · 17 Dec 2012 at 20:04

Styles said:
Thanks for the replies. What about evenings meals, incidental expenses etc? Can I offset these against tax?

http://www.hmrc.gov.uk/incometax/relief-travel.htm

And

http://www.hmrc.gov.uk/briefs/income-tax/brief2409.htm for the HMRC guidance rates for meals I believe.

Styles · 18 Dec 2012 at 12:02

So as a scenario if I paid £1000 per year on hotel costs and then offset these against tax would that mean I would pay tax on £1000 less each year? How much would these save me?

Thanks

Bear · 18 Dec 2012 at 12:17

Styles said:
So as a scenario if I paid £1000 per year on hotel costs and then offset these against tax would that mean I would pay tax on £1000 less each year? How much would these save me?

Thanks

You offset it against your corporation tax, so you get 20% of the amount off your corporation tax bill, so in your example, you will pay £200 less corporation tax.