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.
- How does one compete? 688 9
- Great Service 1,259 17
- Keytime 324 4
- Deadline for appeal against late filing 136 2
- About your hairdresser clients 531 21
- Pool vehicle with age restriction 102 2
- Ouch. Those penalties sting 2,594 29
- Income for self employed associate dentist? 136 1
- Redundancy for husband and wife ltd co 138 2
- Transferring Shares From Manx Co to Cayman Island Co 141 3
- Nine-Page Engagement Letters 766 13
- Trust setting on HMRC CT600 133 4
- Employee tears suit... 259 3
- PAYE & NIC 771 35
- Related party not trading -should debt be written off ? 91 1
- Income £10k salary and £20k net dividends 494 16
- £NIL EPS's wiping out CIS deductions 290 4
- When was the requirement for Ltd. company to have at least two shareholders abolished? 243 5
- HMRC's "HVA" list .... High Volume Agents 747 9
- Sports Club and Partial Exemption for VAT 195 1
- Sanzar 533
- Digital marketing focus group 416
- Are commercial mortgage cashbacks subject to Corporation Tax ? 385
- Sainsbury's mangement 381
- Continuity Agreement 356
- Avanti Accounts 355
- Buyback 308
- Entrepreneurs' relief (ER) for EMI shares 256
- Aggresive sales from Iris 253
- Charity volunteers and mileage 216