Claiming rent as an expense

Claiming rent as an expense

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A friend is a doctor who normally lives in Wales, he has now moved to Essex (exclusively for work purposes) to locum at a hospital and now rents a private property whilst still paying a mortgage on his property in Wales. He has formed a limited company and the query is will he be able to claim rent as an expense?

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Euan's picture
By Euan MacLennan
26th Jul 2016 14:29

Why do you post as Anonymous? Are you a professional accountant advising your friend?

He will presumably be working under the supervision of the management and more senior doctors at the hospital, so it would seem that IR35 rules will apply. In that case, he can still claim travel expenses, including accommodation, from his company and such expenses will reduce the amount that must be paid to him by way of salary. However, from April 2016, such expenses will not be tax-free for IR35 workers and will have to reported as taxable BIKs on form P11D. He will end up paying tax by adjustment of his PAYE code and the company will pay employer's NIC on the amount of the reimbursed expenses, but at least he will save employee's NIC.

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