Ltd Company sole director renting house near to temporary workplaces

Ltd Company sole director renting house near to...

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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

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By JCresswellTax
08th Apr 2014 09:32

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.

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