Reclaim VAT on hotel

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HelenaBrian
HelenaBrian Registered Posts: 2 New contributor 🐸
edited June 18 in AAT member community
Hi Guys. I have an employee who stays in a hotel 2 days a week to be closer to work. The remaining 3 days he commutes from Scotland to Lancashire. My question is can we claim VAT back on his hotel stay. I tried looking it up but I couldn't find anything definite. It is not entertainment for sure. Thanks in advance. Helena

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  • douglasstroud
    douglasstroud Registered Posts: 310 Dedicated contributor 🦉
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    Is this a permanent workplace for the employee?
  • AndrewLeyland
    AndrewLeyland Registered Posts: 41 Regular contributor ⭐
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    One of the first questions was when I went to my current workplace because we had Business Development Managers that spent a lot of time on the road. Instead of me talking about this hopefully, this link will help.
    https://www.taxoo.co.uk/hmrc-travel-expenses-temporary-workplace/

    also off the Gov website
    "Travel expenses
    You can reclaim VAT on employee travel expenses for business trips. Travel expenses can include transport, meals and accommodation that you pay for. Find out who counts as an employee.

    You can reclaim VAT on other kinds of expenses (not just those related to travel) for self-employed people who are treated as employees.

    You cannot reclaim VAT if you pay your employees a flat rate for expenses."
    RegardsCiaran Andrew Leyland
  • douglasstroud
    douglasstroud Registered Posts: 310 Dedicated contributor 🦉
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    Which brings us back to my original unanswered question
    Is this a permanent workplace?
  • HelenaBrian
    HelenaBrian Registered Posts: 2 New contributor 🐸
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    Hi Guys Apologies @douglasstroud I thought clicking Yes next to your comment answered your question - still new to this... Yes it is his permanent place of work and if he is not working in the office he works from home. The hotel stay was temporary to help train new staff members. My confusion was between business trip (can you class it as a business trip if he comes to work?) and something I read about farmers providing a place to stay for their workers, which confused me even more. Thank you again for your kind help.
  • Jasperlenin
    Jasperlenin Registered Posts: 2 New contributor 🐸
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    Thanks for explaining the situation, Even though the stay was for training purposes, HMRC will normally look at where the employee is “based” rather than the reason for staying over. If that location is considered their permanent workplace, overnight accommodation there is usually treated as part of their commute rather than a separate business journey,
  • Jasperlenin
    Jasperlenin Registered Posts: 2 New contributor 🐸
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    Could the accommodation be considered a business expense since the stay is temporary and training,related?
  • Unknown
    Unknown
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    This content has been removed.
  • douglasstroud
    douglasstroud Registered Posts: 310 Dedicated contributor 🦉
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    How is it temporary if it is his permanent place of work?
    If paid by Company possible BIK?

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