Renting a flat - what about bills and council tax?

[AnthonyQuinn]

Go for it then but remember the moment u use it at weekend it's a BIK, though TBH I doubt HMRC would ever find out......

What 'BENEFIT in kind' is it if you chose not to go back home for one weekend if you lived far away? I have stayed over in hotels while travelling rather than come all the way back for the weekend. What is the benefit here?

[Lance]

Although it doesn't speak to utility bills, we strongly suggest you read this Actor loses battle for tax relief for accommodation costs

On a practical note if you can bear a flatshare then https://www.mondaytofriday.com may be of interest.

This is why managed apartments are expensive. The Monday-Friday model is almost all for business people on expenses who are sick of hotels. Monday to Friday lets avoid the issue with BIK (mostly anyway). It's a good business model and I owned property in London I'd rent it out Mon-Fri rather than to scrotes who I can't turf out when I want.

[Lance]

What 'BENEFIT in kind' is it if you chose not to go back home for one weekend if you lived far away? I have stayed over in hotels while travelling rather than come all the way back for the weekend. What is the benefit here?

If you stay on in a hotel for another day it's a BIK. You may not know this or have declared it but it is.

[LondonManc]

What 'BENEFIT in kind' is it if you chose not to go back home for one weekend if you lived far away? I have stayed over in hotels while travelling rather than come all the way back for the weekend. What is the benefit here?

Especially if you've worked late Friday. I've occasionally travelled back early Saturday morning and often come down late on Sunday (that's more to pay £40 rather than £140 for a train ticket); I don't see either of those as a benefit in kind, more of a benefit of incurring a higher accommodation cost to offset the inconvenience of working away.

[johndc31]

Especially if you've worked late Friday. I've occasionally travelled back early Saturday morning and often come down late on Sunday (that's more to pay £40 rather than £140 for a train ticket); I don't see either of those as a benefit in kind, more of a benefit of incurring a higher accommodation cost to offset the inconvenience of working away.

Same.
It's all subjective. I suppose if you ever get collared by hector you must have reasonable reasons why made such decisions.
Personally I really don't think HMRC have the time or resources, if you're obviously taking the p1ss then that's a different matter.

As a matter of question, what's the worse case scenario? you pay back the tax owed?

[Hobosapien]

The expense would be disallowed and would then be re-added to the tax calculations for both the ltd year end and individual's self assessment declared income or BIK.

Personally I've never been overly worried as it will only get picked up if HMRC investigate, and as long as you can show to some degree it's not prime residence and any weekend stopovers are rare/one-off then I wouldn't lose any sleep if some anal cretin at HMRC wants to apply the rules with zero tolerance.

I once had a car breakdown while on the way home on a Friday, so had to re-book into the hotel over the weekend. I claimed it on the expense (I was forced to stay away from home, regardless of the fact the AA relay could have towed me all the way home). I won't lose sleep of scary HMRC in those circumstances. The sums involved are relatively minute.

[Lance]

The sums involved are relatively minute.

For one night in a hotel yes.
For 12 months of a London rental?

[LondonManc]

The expense would be disallowed and would then be re-added to the tax calculations for both the ltd year end and individual's self assessment declared income or BIK.

Personally I've never been overly worried as it will only get picked up if HMRC investigate, and as long as you can show to some degree it's not prime residence and any weekend stopovers are rare/one-off then I wouldn't lose any sleep if some anal cretin at HMRC wants to apply the rules with zero tolerance.

I once had a car breakdown while on the way home on a Friday, so had to re-book into the hotel over the weekend. I claimed it on the expense (I was forced to stay away from home, regardless of the fact the AA relay could have towed me all the way home). I won't lose sleep of scary HMRC in those circumstances. The sums involved are relatively minute.

Correct. You can easily argue the odd weekend stayover at a flat rather than subjecting yourself to travel fatigue. Unless HMRC would rather you put your own health at risk - they'd soon back off if you start talking like that.

[johndc31]

I've done the odd weekend stay due to a number of reasons. Illness being one, when you can't drive.

[johndc31]

The expense would be disallowed and would then be re-added to the tax calculations for both the ltd year end and individual's self assessment declared income or BIK.

Personally I've never been overly worried as it will only get picked up if HMRC investigate, and as long as you can show to some degree it's not prime residence and any weekend stopovers are rare/one-off then I wouldn't lose any sleep if some anal cretin at HMRC wants to apply the rules with zero tolerance.

I once had a car breakdown while on the way home on a Friday, so had to re-book into the hotel over the weekend. I claimed it on the expense (I was forced to stay away from home, regardless of the fact the AA relay could have towed me all the way home). I won't lose sleep of scary HMRC in those circumstances. The sums involved are relatively minute.

So that's it? You basically get a slap on the wrist and pay it back?
I assume that's on a expense by expense basis as well, I really can't see them having the resources to chase buttons especially if you've got insurance and can drag it out.