Making Good company Rental

Making Good company Rental

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Hi Fellow Awebbers.

Just a quick one, i understand the principal of Taxable benefit for Company Rented Properties that are not in relation the business.

I.e we have 2 directors, on live in a company rented flat full time and another spends 75% of his time there, as he spend weekends and one night a week at his main home.

The Previous Accountant has split the benefit (rental cost) 50 to the Director who is a perm resident and pro Rata the other directors 50% based on number of Days in the year that he is at the property.

The Full time director has asked what he would have to pay to "make good", i.e not receve and taxable benefit. one would assume that this would be 50% of the Renal Cost in this Case 1400/2- £700 Per Month, is this assumption correct or is there another way to make good?

thanks

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By geroge
23rd Dec 2014 18:31

You calculate the benefit first, and that is the amount to pay to reduce the taxable benefit to nil.

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