Any Answers Answered: Rent-a-room relief and company cars

House owner attaching 'Room for rent' sign on a wall
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This month TAXtv hosts Tim Good and Giles Mooney ponder AccountingWEB member questions on rent-a-room relief and how to make a company car unavailable.

To watch the full video of Good and Mooney answering readers’ questions, click here or scroll down to the bottom of the page.

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Split of rent-a-room relief

The first cab off the rank this month is a query from AccountingWEB reader PALacc, who asks:

“A husband and wife live together in their main residence. The property is owned fully by the husband. The client rents out a spare room in the property. 

“Would the rent-a-room relief only be allocated to the husband as it is in his name? Or could it be allocated 50/50 as they live together and pay the bills jointly and deal with the renting room out jointly?”

Is it a straightforward question with a straightforward answer, or is there more to this query than first meets the eye? Good and Mooney ran through the responses on Any Answers and provided their opinions on the matter. Their answers start at 0.14 on the video below.

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How to make a company car unavailable?

The second and final question came from Slim, who posted the following enquiry on the Any Answers board:

“So client can’t drive for six months. Other than cancelling the lease how else can it be made unavailable in the eyes of HMRC?”

Presumably, the questioner wishes to make the car unavailable so they don’t have to pay the benefit in kind (BiK) on it, but the BiK is only charged when the car is made available.

From 3.52 in the video, Good and Mooney assess the various solutions suggested by AccountingWEB readers for this vehicle-based predicament, including completing a SORN and removing the car’s spark plugs…

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Full video

For the latest episode of TAXtv visit PTP Interactive. TAXtv is a monthly tax update programme available as an annual subscription from £199, (11 issues plus special editions) to view online, download from the internet or watch on DVD.

About Tom Herbert

Tom is editor at AccountingWEB, responsible for all editorial content on the site. If you have any comments or suggestions for us get in touch.

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