Can someone help me with company provided accommodation. Company has contracted to provide services for a minimum of half a month in multiple locations 300 miles away from the director's home. The accommodation options include hotels/b & b's etc. But what about the Company renting a house, an apartment or small cottage at £5-600 per month plus basic bills could easily be cheaper, especially if additional days were worked.
The director will re-locate once his house is sold, which could obviously take some time in today's market. HMRC relocation seems to suggest that there is a £8,000 exemption limit for personal TAX/NI which can be extended beyond 04/14 for reasons such as house not selling so for the traveller am I correct in thinking that there would be no additional tax liability?
I think that it looks fine from the company's point of view as an allowable expense, multiple locations (presumably property chosen will be central to locations), used entirely for business purposes as the director will travel home when not working and not likely to exceed 12 months let alone 24.
Seems no different to contractors working through their own limited companies claiming flat rental.
It would be a good idea to show that this is cheaper than hotels and B&B's by taking printouts of alternatives in the area.
On the £8k relocation allowance remember that is not a set sum but rather an up to that amount in legitimate expenditure that cannot include any compensation for dropping the price of an existing property for a quicker sale (something that has been attempted i the past).
Ensure that he director does not attempt to claim for anything that he would have needed to purchase anyway had he been at home or that would be transportable back to home at the end of the week.
For example, food (#1), furnishings, sky subscriptions, etc.
Also, whilst the accomodation may be allowable as it is job related the provision of heat, light, council tax, etc. is a benefit but because this is job related the maximum taxable benefit would be 10% of the directors net earnings.
Sure that there's loads more to add to this thread (#2) but that should get it rolling,
kind regards,
Shaun.
#1 in a hotel limited subsistence is allowable. In rented accomodation it is just a home away from home so not allowable.
#2 Cry havoc and let slip the dissenters.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
No 'dogs of war' from me Shaun!
I think so long as it can be argued that the place of work is temporary then this is an expense that has been incurred due to the temporary workplace and so should be claimable, the only concern I would have is that the director intends to relocate so is it really temporary?
Thank you both very much for replying. I gather that it will be a break even situation on B & B and rent with basic council tax and electricity bills in the winter - far cheaper in the summer with the influx of tourists and much cheaper as soon as any additional days are worked. Thanks for the tip re printing 'evidence', that is very helpful.
The chap does currently intend to relocate (although that could always change couldn't it, if a family member became ill etc., etc.). Once he relocates the rented accommodation will no longer be required.
I don't think that he intended to include any 'frills', just basic accommodation, no phone line/tv, just somewhere to sleep and eat.
