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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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i am the director of the company which earns £3600 a month,

Customer Question

i am the director of the company which earns £3600 a month, i am the only employee for the company, i work away from home and have to pay for accommodation abroad, £400 monthly. my family have been unable to move with me as it is contract work.
My question is this
Am I able to pay my rent for my family accommodation as an expense?
The address is my registered office address
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

Are you referring to the cost of the UK accommodation that your family live in or the accommodation that you live in abroad?
Customer: replied 3 years ago.

I am referring to the accommodation my family live in away from my work location.

Expert:  TonyTax replied 3 years ago.

Thanks.

I'm afraid that you cannot claim an allowable deduction against your company's corporation tax liability for the rent paid on the UK home your family lives in without there being a taxable benefit in kind on you. It would also incur a Class 1A National Insurance Contribution charge at 13.8% for the company. Take a look here and here for information on allowable accommodation costs.

I hope this helps but let me know if you have any further questions.

Expert:  TonyTax replied 3 years ago.
Hi again.

It's been a few days since I answered your question. Is there anything you need further clarification on?