Paying a friend to stay at their house.
I have a client who is a director of a limited company who has to go to meetings in London. Sometimes he stays at a friends house instead of staying in a hotel. The director wants to pay his friend an amount of money, say £50 a night, for staying there instead of paying £100+ to stay in a central London hotel. The company does not have any kind of dispensation in place.
If the company were to reimburse the £50 what would the tax implications be for the director?
Am I right in thinking there would be no tax or NI payable by either the director or the company with the only implication being that the reclaimed expense should be included on the P11d?
If you could point me in the right direction of the guidance on the HMRC website, that would be fantastic.
- Payroll software : RTI submissions 235 10
- Audit Report Query 166 5
- Quarterly PAYE 139 5
- Coming in from the cold 160 2
- Employment Allowance related companies 60 2
- What password safe app does anyone recommend? 1,277 26
- VAT Query re: Foreign VAT 47 1
- Should design costs be capitalised? 122 3
- Issuing an invoice as an individual (non UK resident) 56 1
- Thats Better 238 6
- Fee's for P11D's 237 3
- Value pricing 536 18
- reporting salary? 125 2
- apprentices 78 1
- Sage Payroll 246 10
- VAT 141 2
- Belated VAT Exception Application 221 7
- Enforcing A CCJ 247 6
- Multiple PAYE Schemes 127 2
- Childcare Vouchers 152 2
- Residential Property Purchase Above £750K 762
- Using Sage with Sofa Categories 518
- Does anyone have an unwanted ICAEW wooden plaque? 389
- One man Company and closing payroll scheme as none paid 364
- Goods shipped inter EU and VAT Reporting 273
- Non-Resident Director - UK Tax Position? 213
- Sage 200 and Access Dimensions reviews 212
- transferring simply accounting 2010 from xp to windows 7 195
- Director Loan account operation 193
- vat return 161