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.
- Capital Gains PPR and allocation of costs 323 15
- Designated sole Residence 96 2
- HMRC Sends Derbyshire pensioner Doug Yeomans tax demand for £4.7 BILLION! 682 15
- Anyone know what this is? 120 6
- Anybody still doing returns? 587 24
- Capital allowances on transfer of business 123 5
- HMRC filing meltdown? 852 27
- 'My colleague fills in his own Self Assessment" and he/she claims,x,y and z" 452 7
- Selling Capital Allowences from Self Employed to Ltd Buisness 244 9
- no utr 247 8
- client can't/won't pay 2,098 49
- Director drawings 594 32
- Tax Returns for non residents 271 2
- Investment properties/freehold land 69 1
- Capital Loss 100 3
- LLP formed in 2013 85 1
- Clothing 480 11
- File Abbreviated LLP accounts online? 170 7
- Practice management 443 8
- Interest on pre-letting? 129 4
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 948
- Underpaid VAT assessment and relation to SATR 662
- Did you realise Google will not patch android exploit ... 618
- Latest phishing scam 594
- Cashback for opening business bank acct = trading income? 432
- Auto Enrolment Questions Answered 322
- Scratch Head 259
- Loan benefit after person ceases as director/employee 245
- Sabbatical payments 211
- Negligible Value Claim 190