IT contract job away from home and tax ?

P

POR

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Hi
Not sure if this for Tax section or the Work section but here goes anyway.

I live down the country and may have a daily rate IT contract job coming along in Dublin.

I would be registered for VAT and billing the agency that found me the job, rather than the company itself.

I would have to get a place to live in Dublin (a studio or 1 bed apt) and be there Monday to Friday and come home to my wife and kids at the weekend.

Does anyone know if the rent I pay in the place in Dublin could be put down as an expense when I do my taxes ?

The same goes for the travel expenses that I would incur travelling to and from Dublin, could they be put down as and expense ?

I have been a VAT registered contractor like this before but not living away from my home at the time.

Thanks
 
No and no are the simple answers.

Neither are business expenses - revenue don't subsidise people because they choose to relocate.

Revenue are very active at present in scrutinising Contractors with elevated levels of Travel & Accomodation expenses :
IT Contractors / Self Employed engineers etc are all coming under increasing scrutiny - see here : http://www.omahonydonnelly.ie/revenue-audit/
or here : http://www.askaboutmoney.com/showthread.php?t=176443

The office you work in would be considered your normal place of work so you cannot claim any travel expenses commuting to/from it.

On a separate note - why rent an apt/bedsit ?

I know loads of contractors coming to Dublin from UK / rest of Ireland for work who have either :
- Done a deal with local guesthouse / hotel for accomodation Mon-Thur
- Use repeat stays to negotiate volume discount on a hotel for Mon - Thu
- Setup an apartment share with someone working in UK during Week / home at weekends

They all travel early monday morning / return home friday evening.
All of these avoid lengthy leases, utility bills and are flexible enough to change week by week (eg holidays/working from home etc)

What part of Ireland are you commuting from ?
 
Very topical area at the moment - Revenue are conducting a National Contractors Project whereby they are having a serious problem with expense claims.

I would ask yourself - Where do you normally perform your duties? At customers premises? If so, that is your place of work and you base your travel and subsistence costs on that basis.

The problem here is that this is not a temporary absence. Maybe you could claim something under out of hours service or if you were to work from the rented accommodation. Apart from that, your the same as anybody else that rents in Dublin and travels to their normal place of work in the city centre, with no right to claim it as an expense.

See here for Revenue statement of Practice on this area www.revenue.ie/en/practitioner/.../statements-of-practice/sp_it_2_07.pdf‎
https://www.google.ie/#
 
Thanks for the info folks

I would be based in Kerry but working Mon-Fri in Dublin.
 
What part of Dublin is the job in ? probably a 3 hour commute to Dublin (at least). Do you have to drive ?
 
A friend I know is in a similar position. He commutes to the UK every week Mon to Thur for work. Expenses are allowable. He was audited last year and revenue had no problem with this as long as you are sensible about the expenses and they are real.
 
Lauren said:
A friend I know is in a similar position. He commutes to the UK every week Mon to Thur for work. Expenses are allowable. He was audited last year and revenue had no problem with this as long as you are sensible about the expenses and they are real.
Click to expand...


Lauren - where is his normal place of business ? ie - who holds his contract and is this travel something they require ?
 
The contract is with a UK based company. Normal place of work is any of their offices in the UK but he is resident in Ireland and if he could get work in Ireland he would. He has a limited company setup and pays tax in Ireland.
 
Lauren said:
The contract is with a UK based company. Normal place of work is any of their offices in the UK but he is resident in Ireland and if he could get work in Ireland he would. He has a limited company setup and pays tax in Ireland.
Click to expand...

Just because he was audited and they allowed it doesn't necessarily mean that the auditor was correct... ;)
 
mandelbrot said:
Just because he was audited and they allowed it doesn't necessarily mean that the auditor was correct... ;)
Click to expand...

That's the problem with Revenue - if you get any sort of fair or favourable treatment, they reserve the right to return, tear up the script and go to town on you.

I have within the past 12 months advised a number of people that in my opinion they should take extreme care before locating a business investment here, in comparison to the more business-friendly environment in the UK. No wonder Ireland is sinking.
 
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