Hello
if a Ltd company sole director rents temporary accommodation near to temporary workplace, is the full rent and utilities tax deductible for corporation tax purposes?
At what point can there be a benefit in kind issue, if at all
Thanks in advance for advice
Replies (1)
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It depends
I would allow it as an expense if:
The rented property was far enough away from his home to justify incurring the costThe property was sufficient for one person, i.e. he is renting a 1 bedroom flat rather than a 4 bedroom house for his family to stay
It becomes a BIK issue if they continue to rent the property after breaching the 24-month travel rules.