If the Company rents the entire 3 bedroom apartment for £900 per month all in (including rates, utilities and internet) and then sub-lets one room each to two permanent employees (one also being a Company Director) for £300 per room per month, with the remaining room being used for temporary employees working at the same location on an irregular basis. What would be the taxation implications? As the employees are paying the going rate for their room is it more straight forward?
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Does the landlord consent to subletting and, if so, has the apartment been registered as a HMO with the relevant authorities?
Is £300 the actual market rate or just £900 divided by 3?
... with the remaining room being used for temporary employees working at the same location on an irregular basis.
How irregular is irregular? What happens to the room when it's not being used? On the face of it, the director has the use of it. What is the company getting for its £300pm when the room is not in use?
... for £300 per month it’s drastically cheaper than the current hotel / Airbnb bills for accommodation.
That isn't the test for tax.
For 2.5 weeks per month, the director and employee have sole occupation so arguably should be paying more than £300 depending, as I say, whether the 3rd room is capable of being used when not temporarily occupied by a temporary employee.
How long is the whole arrangement going to last? Is it for the duration of a particular project, for example?