RENTING A FLAT IN LONDON BY DIRECTOR

renting a flat in london whilst on a contract

Didn't find your answer?

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

Replies (2)

Please login or register to join the discussion.

avatar
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.

Thanks (0)
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.

Thanks (0)