# Working away from home allowances



## R30

6 months ago I started a new job as a staff employee for a company in Liverpool. I live away from home 4 nights a week in a bed and breakfast.

I'm wondering if as an employee I can claim allowances or tax relief for the incurred travel and accomodation costs? Searching around it seems as a contractor there are allowances and so on that you can claim but I couldn't find anything related to permanent employees who work away from home.

Is anyone in a similar situation who can help or does anyone know more about this kind of thing? 

I will probably contact my local tax office to find out more but I was hoping to know a little more about it before I rang up.


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## DLC

It comes down to whether the company expects you to live away from home 4 nights a week or whether it's your choice. Normally if it is a requirement of the job, the company should cover your expenses or provide an allowance. 
If however it's your decision to not live near your place of work and therefore stay in a B&B, then there is no obligation for the company to provide an allowance. Not being a tax expert I'm not sure in that situation there'd be any tax breaks either.
As with anything, doesn't hurt to ask.


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## tony2

As above,

If it can be proved a requirement of your position your company can claim these benefits (you cannot) and therefore you should put these in to your company as expenses however your not entitled to all cost incurred as some of these will be classed as living requirements ie you would have to eat anyway so a portion of food cost cannot be claim back however due to the raised cost of living away from home some of these food costs are covered,

I do this for my self and some of my staff when we are required to stay away on occasion


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## R30

Thanks for both replies. It's not a requirement of the job to live away from home I just choose to as my family and I don't wish to move house to Liverpool. The company did take that into account when I negotiated a salary and have made a contribution that way towards the extra cost I incur so it doesn't sound as though there would be anything to gain from asking about relief on this.


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## tony2

R30 said:


> Thanks for both replies. It's not a requirement of the job to live away from home I just choose to as my family and I don't wish to move house to Liverpool. The company did take that into account when I negotiated a salary and have made a contribution that way towards the extra cost I incur so it doesn't sound as though there would be anything to gain from asking about relief on this.


No your right,

However and this is personal advice, you could say to your company that you have found the extra pay is not covering the cost's incurred and therefore it doesnt feel like you have had a relative increase.....

See what they say but apart form that it is what it is:thumb:


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## R30

Thanks again Tony2, pay reviews are coming up soon I'll see how I get on.


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## goste

I am allowed £5 per night gratis, £25 on food + 1 alcoholic drink - all accomodation is paid for on a dinner / bed / breakfast basis.

That will be specific to my company & I had to do a lot of digging just to find that!

The company can claim back the VAT, but, depending on how much you're spending, you may want to consult an accountant.

"A good accountant should pay for themselves"

G.


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## tony2

goste said:


> I am allowed £5 per night gratis, £25 on food + 1 alcoholic drink - all accomodation is paid for on a dinner / bed / breakfast basis.
> 
> That will be specific to my company & I had to do a lot of digging just to find that!
> 
> *The company can claim back the VAT*, but, depending on how much you're spending, you may want to consult an accountant.
> 
> "A good accountant should pay for themselves"
> 
> G.


And the employee can get a Tax free sustenance allowance


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## R30

Sorry guys, I'm lost now. 

Let me see if I have this all straight (i thought had this understood but these new replies have me wonderinng).

So the situation is I'm permanently employed and live away from home during the week because I don't wish to relocate to the area where I'm working.

As such since I'm staff and not contracted I can't claim anything unless my company actually sends me off somewhere else to work in which case I could claim for the time spent away working in an alternate place.

Is that correct?


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## tony2

All Im saying is that if you Get a sustenance allowance (at your company's discretion) you don't have to pay tax on it 

But everything else is as before


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## R30

Oh, I understand now. I don't actually get a sustenance allowance as such. The company simply added a bit more on to my salary at their liberty to help me cover the cost of working away from home, nothing is actually classed as a sustenance allowance and therefore (unfortunately) I wouldn't think I'd be able to claim tax back for it.

Thanks again for helping.


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