Accommodation change - what is acceptable receipting wise?

[Nitro]

Hey everyone

Hope it's a simple one. I'm currently staying in a hotel during the week in London for my contract. I'm looking to rent a room in a friends house to help us both out. It's a little extra cash for her, and cheaper for my limited company. Is this a legitimate expense? What kind of receipt do I need from her? A handwritten note? Proof of a regular standing order? She isn't formally renting (I would only be staying there 4 nights a week) and I have my mortgage back home. Could I give her the £25 per night and just have that as my allowance?

Hope I've explained this right.
Thanks

[Old Greg]

Hey everyone

Hope it's a simple one. I'm currently staying in a hotel during the week in London for my contract. I'm looking to rent a room in a friends house to help us both out. It's a little extra cash for her, and cheaper for my limited company. Is this a legitimate expense? What kind of receipt do I need from her? A handwritten note? Proof of a regular standing order? She isn't formally renting (I would only be staying there 4 nights a week) and I have my mortgage back home. Could I give her the £25 per night and just have that as my allowance?

Hope I've explained this right.
Thanks

In my NHS employee days, I knew colleagues who would do this and their host would buy a receipt book and hand write receipts. I imagine this would do for tax purposes but ask your accountant.

[northernladuk]

I'd say you are going to be benefiting personally pretty regularly so BIK will apply

[SueEllen]

She can either:
1. Find a formal lodger agreement online, address it to your limit company and state you cannot stay weekends without paying extra.
2. She can get a receipt book
3. Do 1 and 2

She can then charge whatever she likes and charge it to your company account.

[northernladuk]

She can either:
1. Find a formal lodger agreement online, address it to your limit company and state you cannot stay weekends without paying extra.
2. She can get a receipt book
3. Do 1 and 2

She can then charge whatever she likes and charge it to your company account.

She doesn't need to get a formal agreement for renting to friends and family. Bit over the top that.

[SueEllen]

She doesn't need to get a formal agreement for renting to friends and family. Bit over the top that.

Looks less dodgy if someone decides to go through your paperwork as years ago HMRC abolished the amount you could give to family and friends for staying with them.

[Nitro]

She can either:
1. Find a formal lodger agreement online, address it to your limit company and state you cannot stay weekends without paying extra.
2. She can get a receipt book
3. Do 1 and 2

She can then charge whatever she likes and charge it to your company account.

I like this, very simple I guess.

But what about the tax implications for her personally? I know it's nothing to do with me, but since she's a friend I naturally don't want her losing out.

I'd say you are going to be benefiting personally pretty regularly so BIK will apply

With any luck!

[eek]

I like this, very simple I guess.

But what about the tax implications for her personally? I know it's nothing to do with me, but since she's a friend I naturally don't want her losing out.



With any luck!

See https://www.gov.uk/government/public...-a-room-relief The maximum relief now is £7500

[ASB]

If it is rented to an individual relief under rent a room scheme. If it is rented to a company this doesn't apply.

[Nitro]

Shouldn't come to £7,500 a year, so that's good.

Account got back to me and said she just needs to give handwritten receipts. Winner.