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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7290
Experience:  FCCA FCMA CGMA ACIS
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Following an inspection, HMRC has ruled that my company

Customer Question

Following an inspection, HMRC has ruled that my company should pay PAYE on the proportion of a US resident director's salary that can be attributable to board meetings that he attends in the UK. Fair enough. BUT, they are also saying that we should apply PAYE to any hotel costs when he is in the UK as they would regard our UK office as his 'permanent workplace' and therefore the accommodation costs would be a taxable benefit(!) Can this really be the case - it seems grossly unfair for 4 half day meetings a year...
Submitted: 7 days ago.
Category: Tax
Expert:  bigduckontax replied 7 days ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

 

Bad news, I regret, I concur with HMRC's opinion.

 

Customer: replied 7 days ago.
Wow! Would it make a difference if the accommodation costs were being paid by his US employing company? HMRC has accepted that his visits are mainly non-taxable since they relate to duties other than as a board director. Typically the business trip would be around 5 days and the board meeting only on one of those days.
Expert:  bigduckontax replied 7 days ago.

Then it would not fall to him as a benefit in kind.

Customer: replied 7 days ago.
So to be clear, providing the UK company does not pay for the hotel then there would be no BIK?
Customer: replied 6 days ago.
Hi, just checking whether you missed my last point? Thanks.
Customer: replied 5 days ago.
Hello, can you confirm please?