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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15716
Experience:  International tax
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Hello, I'm worried I may have gone about my accommodation expenses

Resolved Question:

Hello, I'm worried I may have gone about my accommodation expenses all wrong and would like to know if you can help me.
Back in May I was offered a 6 month short contract in Sweden, since I am single and lived alone I gave up my flat in the UK and moved across to Sweden. I was unable to find any place here that would offer me a flat for only 6 months and ended up staying in a hotel for a discounted rate for the duration.
Can you tell me if I was wrong to pay for the hotel room through my business for the days that I was working?
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
The exemption in respect of temporary living accommodation applies where you intended to move to permanent accommodation to complete the relocation. So for someone who lives in a hotel until the a new home is secured, or who moves into a rented house at the new location for the same reason, the hotel and the rented property represent temporary living accommodation.
I agree with your accountant.
Customer: replied 2 years ago.

Thank you for your answer.

To verify, as the contract is only for 6 months (after which I run into the 183 day rule on tax in Sweden) and I stayed in the hotel for the entire duration before returning to the UK once the 6 months are up (i.e. I was not able to find a more permanent place to live), would the hotel room still be accepted as temporary accommodation through the business?

Expert:  TaxRobin replied 2 years ago.
Yes, the accommodations would be temp and as such would be allowed as expense.
Customer: replied 2 years ago.

Sorry to keep you longer, but would I be correct in assuming that weekends where I did not work are not classed as business expenses despite being tied to working in a different country temporarily?

Expert:  TaxRobin replied 2 years ago.
Where a business trip requires a stay away from home the hotel accommodation and reasonable overnight subsistence costs will be allowable. As the place is far then weekends would not need to be subtracted from the equation.
You are not keeping me longer and it is expected that you ask as many questions as you need.
My goal is to give you excellent service.
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