Subsistence

Subsistence

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A one man company based in Northern Ireland has got an 18 month contract in Edinburgh. His registered address is his home address. If the company rents an apartment for him in London, can the company claim tax relief for the rent and is there a BIK on the director ? Also can he claim for travel expenses to / from Edinburgh at the week-ends ?

My understanding is that as the contract is under 24 months the company can claim tax relief for the rent and travel and that there is no BIK's.

Any guidance would be much appreciated.
Keith

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Euan's picture
By Euan MacLennan
05th Jun 2008 13:28

Job in Edinburgh, apartment in London?
Basically, you are right that Edinburgh counts as a temporary place of work because the duration of the contract is less than 24 months. That means that the cost of travel between his home in Northern Ireland and Edinburgh is a tax deductible expense for the company and is not a BIK for the employee. Accommodation follows the basic rule for travel, so provided that the rental of the apartment is not grossly excessive compared with the cost of a hotel, the rent is also tax deductible and not a BIK.

I assume that London was a typo.

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