One of my clients has managed to obtain work for a period of 4 months but it will mean she will have to stay overnight in a hotel due to the distance from her home.
Having discussed the situation with her prospective client, the client has agreed to pay her travel (from hotel to place of work) and hotel costs including meals.
So in theory my client does not have any T&S.
However, the customer is paying my client inclusive of these additional costs in one sum each week.
So, she will be taxed on the reimbursed T&S costs.
It seems correct that I claim her hotel fees etc. as an expense, as this would correct the tax situation.
Seems simple enough to me, but I would appreciate anyones view on this.
I think that we're so used to there being a twist in everything that ituation crops up we're looking for the hidden problem.
As you suspect, treat everything received as income and expense the hotels so straightening everything out in the wash.
For once, simples.
Shaun.
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Shaun
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