Self employed working away: can I claim accommodation?

[Davesladeuk]

Hi, I live and work in the same town that I operate my taxi business from and want to work away in a city. My business will stay operating and I will still have my home address which I will be returning to every weekend and every other week, however I will need to pay for accommodation in the city would this be an allowable expense I can put through the books?

Thanks in advance

[bd6759]

The simple answer is no. This is a living expense, not a business expense.

[LozaACCS]

The simple answer would be correct if a duality of purpose (which is always the case) resulted in the expense being tainted by the duality of purpose and so not allowed for the reason that the expense was not wholly and exclusively for the purpose of the business as required by S34(1) ITTOIA 2005.
S34(2) allows relief where the expense is incurred for more than one purpose (on the W&E element), if this were not the case then it could be argued that no expense involving an element of personal use could ever be allowable.

As an example, I offer accountancy and taxation services from my base in the black country, I also work in criminal defence which requires over night accommodation for pre arranged prison visits.
I am also required to book accommodation for up to one week when the case comes to trial, meetings are called by the legal team at short notice and can extend well into the evening.
To avoid a duality of purpose I could sleep in the car or in a bus stop, however, much as I love Liverpool (the last case), obviously I would not do that.

Would anyone seriously suggest that my expenses are not allowable.

In summary it is incorrect to suggest that there is a simple answer, there is not and the position needs to be determined from the facts which would include the purpose of the accommodation, any duality of purpose and the length of the stay in relation to the business activity concerned.

[Davesladeuk]

Thanks for the answers. I will still be running my business in my hometown whilst working away and would only be staying in lodgings whilst working and will be immediately returning home once I have finished, also I would only return to lodgings once I am starting work again. As my city lodgings would be my second home solely used whilst working away from home does this not allow for some kind of allowance?

It's a shame because if I was employed and were working at an office other than my permanent one then subsistence, accommodation and expenses wouldn't be a problem.

[bd6759]

My post was in response to the original question. Loza has posted a question with a different set of facts, so he will get a different answer.
In your situation the accommodation is not an allowable expense. If you drove Loza to Liverpool and were too tired to drive back home, the cost of accommodation would be allowed.