Tim Healy in taxman dispute

Auf Wiedersehen, Pet actor Tim Healy is embroiled in a tax dispute over the London flat he rented while appearing in Billy Elliot the Musical.

Healy, who is appearing next month at a convention to celebrate the 30th anniversary of the cult TV series, argued that he should not have to pay income tax on money he spent on accommodation while appearing as Billy’s father in the West End show.

The comic, who lived in Cheshire at the time with his family, argues that it was both cheaper and more secure to rent a flat than to stay in a hotel for the 12 months he was in London for rehearsals and performances of Billy Elliott the Musical.

The Newcastle-born actor argues that he was entitled to recoup £32,503 in accommodation expenses as he was an “itinerant worker.”

Healy says the money spent on accommodation was “wholly and exclusively incurred for the purposes of his profession.”

In 2012 the First Tier Tax Tribunal (FTT) found that Healy’s accommodation costs were allowable for tax as they were “wholly and exclusively” incurred for the purposes of his trade.

However, HM Revenue & Customs appealed against the decision, arguing that a legal error had been made during the first tribunal.

They claim that the London flat was Healy’s “base” at the time and therefore he should pay tax.

The Upper Tier Tax Tribunal (UTT) heard HMRC’s appeal in April, and has ruled that the case should be re-examined.

In a written ruling published on a legal website, two appeal judges said the tribunal should establish what was in Healy’s mind when he entered into a tenancy agreement.

Specialist legal and accountancy publications suggest that Healy’s case is of significance to any actor or comedian working away from home.

The case continues.