A limited company rents pub premises. It also pays council tax for the residential part of the premises (where the landlord lives). The owner of the limited company (the landlord) lives in the residential part.
Are payments for council tax by the company drawings/DLA items?
Or are the payments business expenses for the limited company?
If they are expenses, are they treated as a taxable benefit on the landlord (who is an employee director of the company)?
Thanks.
Replies (2)
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Landlord
All expenses paid by the company for the flat above the pub would be a BIK to the Landlord/Director other considerations :
GasElectricityRentWater
Payroll as opposed to BIK
All payments are deductible for the company as part of remuneration package.
You need to check each bill - personal liabilities of the landlord such as council tax are pecuniary liabilities and as such are pay for PAYE purposes not a benefit.
I assume that you then need to assess the provision of accommodation from a BIK point of view where the costs relate to company liabilities