Living Accommodation Taxable Benefit

Living Accommodation Taxable Benefit

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We have a client who is the sole director/employee of a limited company. We, and he, believe the contract is outside IR35 and that can be assumed for the purpose of the query. He works mostly away from the client's premises, although does spend some time there, and lives and works
in a hotel during the week as his work is not within easy travelling distance of his home. He has worked out that it would be cheaper to purchase a flat rather than continue to pay hotel prices in Central London. He is considering purchasing a flat and renting it at market rent to the limited company. He believes that it will satisfy the wholly and exclusively test. There would be no net rent assessable as the mortgage interest would exceed the rent.

Any thoughts about what would be the P11d implications assuming that the engagement lasted 18 months and that the flat would be his workplace during the week? The flat would be vacant at weekends as he would return to his PPR
Bob

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By NeilW
19th Sep 2005 16:34

No benefit
If the flat is used exclusively as a direct replacement for a hotel then there is no benefit to the individual under the benefits code.


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