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RENTING A FLAT IN LONDON BY DIRECTOR

renting a flat in london whilst on a contract

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A director of a consultancy firm has a contract in London for 12months (midland based) - will the rental for the propery be tax deductable by the company  and the utlity bills??  Director also needs to furnish and recons this will be about £1000 ikea - i am inclined to say these if bought by company need to be on balance sheet and when contract finished sold??

any help gratefuly accepted

sarah

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By Discountants
02nd Jul 2016 16:53

I feel this would certainly be tax-deductible for the Limited Company....

.... however it is likely to also create a BIK on the director so is probably not tax-efficient.

I agree about the furniture, if the company had purchased it it remains property of the company not the director.
This is a classic case of the Director (and presumably sole shareholder) thinking he and the company are the same legal entity - you will need to re-educate them otherwise they are likely to make other mistakes related to this.

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By JCresswellTax
04th Jul 2016 09:30

We need to know more about the directors circumstances, is this a contractor, has he worked in london before etc.

You would be trying to get the accomodation expense allowed under the 24-month rule, have a look at HMRC booklet 490.

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