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)
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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.
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.