The Revenue has announced a consultation is to identify a fair and effective way for hoteliers to account for non-business board and lodging expenditure for tax purposes. This follows a period of chaos earlier this summer when the Revenue decided that it was no longer going to allow its local offices to agree flat rate board and lodging add-backs for taxpayers in the hospitality industry who happen to reside in their trading premises.
It is very difficult in practice to measure "private use" when a proprietor shares their facilities with their guests, and the use of informal and localised practices lead to some significant discrepancies between levels set around the country.
The consultation exercise aims to re-examine flat rate allowances or other options that will:
- enable hoteliers...