Deduction for business expenses
Deduction for business expenses
21.23 Where the accommodation provided is simply a home for the employee and his or her family,
the question of any deduction under the expenses rule described in Chapter 7 does not arise.
Where the employee is necessarily obliged to use part of the property exclusively for business,
the expense of such use may be deducted in arriving at the tax charge. For example, there may
be circumstances in which part of the accommodation has to be reserved for business purposes,
such as a showroom. In these cases, an appropriate deduction may be given for tax purposes.
21.24 If accommodation is provided for an employee, for example, in a flat or hotel, while the employee
is on business duties away from his or her home and normal place of work, the cost of this may
be allowable as a deduction under the expenses rule. For example, a company in Yorkshire may
rent a London flat for an employee who has to make frequent business trips to London. The extent
of any deduction will depend upon the circumstances. If the accommodation is no more than an
alternative to hotel accommodation and is not available for private occupation the whole cost
of renting and running the flat may be allowed as a deduction. On the other hand, if the employee
or his or her family also had the use of the flat as a private residence any allowance would
be restricted.
21.25 If, however, a London flat is provided for an employee whose job is in London and the flat is
used by the employee as a pied à terre no allowance would be due. Equally, if the flat is used
by the employee or the employee’s family as their only or second home, no deduction for tax
purposes would be due.
Apparently its the last paragraph from here thats relivant http://www.hmrc.gov.uk/guidance/480_chapter21.pdf
Anyone care to comment?
Deduction for business expenses
21.23 Where the accommodation provided is simply a home for the employee and his or her family,
the question of any deduction under the expenses rule described in Chapter 7 does not arise.
Where the employee is necessarily obliged to use part of the property exclusively for business,
the expense of such use may be deducted in arriving at the tax charge. For example, there may
be circumstances in which part of the accommodation has to be reserved for business purposes,
such as a showroom. In these cases, an appropriate deduction may be given for tax purposes.
21.24 If accommodation is provided for an employee, for example, in a flat or hotel, while the employee
is on business duties away from his or her home and normal place of work, the cost of this may
be allowable as a deduction under the expenses rule. For example, a company in Yorkshire may
rent a London flat for an employee who has to make frequent business trips to London. The extent
of any deduction will depend upon the circumstances. If the accommodation is no more than an
alternative to hotel accommodation and is not available for private occupation the whole cost
of renting and running the flat may be allowed as a deduction. On the other hand, if the employee
or his or her family also had the use of the flat as a private residence any allowance would
be restricted.
21.25 If, however, a London flat is provided for an employee whose job is in London and the flat is
used by the employee as a pied à terre no allowance would be due. Equally, if the flat is used
by the employee or the employee’s family as their only or second home, no deduction for tax
purposes would be due.
Apparently its the last paragraph from here thats relivant http://www.hmrc.gov.uk/guidance/480_chapter21.pdf
Anyone care to comment?
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