If working away from home is a regular part of your job, you’ll already understand the importance of finding accommodation and accommodation expenses that is both comfortable and affordable.
Being away from your loved ones for days, sometimes weeks at a time can feel difficult enough, but when you bring inadequate accommodation to the mix (as well as all the additional stress that it can bring) – then your daily grind can quickly become a thing of nightmares.
Fortunately, there are many serviced apartments in the UK options that now cater specifically for contractors. We’ve covered how we tend to the needs of contractors in detail in some of our past articles – and how we can help make your work trip as seamless as possible. Find out more about our accommodation for contractors and all the benefits.
In today’s piece, we’ll address those unanswered questions about accommodation expenses. Whether you’re booking contractor stays for yourself or a larger team, this will help you get to grips with the fiscal side of things. And hopefully, take some of that pre-booking pressure away.
Read on for the full (quick) guide.
Claiming Contractor Accommodation Expenses as a Business Expense
Any temporary accommodation that is booked for business-related purposes can be claimed as a business expense. If you’re a limited company contractor and are staying away from your permanent residence for work, then there is currently no strict limit on how much you can claim as a “justifiable” business expense.
So, rest assured, there’s no maximum “cap” set by HMRC – however, you’ll obviously benefit from booking the most cost-friendly options in the long run.
Booking Contractor Accommodation Outside of the UK
The same rules generally apply when you’re booking contractor accommodation overseas. Luke Stays has a portfolio of properties across the UAE and Europe, many of which are used for business purposes.
In this instance, most contractors use the “pier Diem rule” which is permitted by HMRC and provides a flat claim for accommodation. However, the rules will vary depending on where you book contractor accommodation. So do double check with the destination you’re going to be staying at first. And contact us directly for properties across the vast areas that we operate in.
Fortunately, we have put together a tailored article about how trade stays and Luke Stays can be a perfect match together. We specialise in providing the best serviced apartments for contractors in the UK as we know exactly what they need in terms of amenities and costs. Head over to this blog next: Why Trade Stays and Luke Stays are a Match Made in Heaven
Other Accommodation Expenses
This is where things get a bit complicated. Outside of your short-term rental accommodation, HMRC can be quite strict about other justifiable expenses.
Meal expenses are currently capped at £5 per day if you work for more than five hours, and £10 per day if you work for more than 10 hours. The cost of an evening meal can also be factored into this for overnight stays. Which would apply in this instance.
Contractors can also claim expenses on the cost of phone bills and laundry – however, this will again be capped by HMRC, and it’s best to double-check before going overboard.
Anything that is deemed as “leisure” during a contractor stay, such as paying for a Netflix subscription or going to the pub in the evening for social drinks, cannot be claimed as a business expense.
Generally, if you’re booking a serviced apartment in Newcastle as contracting, we left you insightful tips. It will help you to consider more things before you book: 5 Tips to Book Cheaper Serviced Apartments in Newcastle
Booking the Most Suitable Accommodation for Contractor Stays
Once you’ve got your head around all the expenses and what you can claim against the business. It’s important to find accommodation that’ll suit your (or your team’s needs).
Generally speaking, short-term rentals have become more popular for contractor stays over hotels, due to the flexibility they offer. Not only this, but short-term rentals on average provide up to 30% more space in their units. Compared to a traditional hotel room – and often at a lower cost.
It’s strongly recommended that you book contractor accommodation directly with the hosts themselves (as opposed to on Airbnb or other booking platforms), as this is where you’ll find the best rate and can easily make specific requests. Contractor stays usually require more flexibility in terms of dates and room options. A Help Centre on Airbnb’s website won’t be as accommodating with this.
Booking contractor accommodation via Luke Stays is easy, and we’re also the most trusted short-term rental provider in the industry – as per our I-PRAC Accreditation and years of successful service. Learn more about our Staycover feature on all direct bookings.
Have a browse through our property portfolio. And get in touch with our friendly team by clicking the widget below. We would be happy to handle your and your team’s requests.