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Where Taxpayers and Advisers Meet

Hotel accommodation

Barty60
Posts:2
Joined:Fri Feb 25, 2022 6:41 pm
Hotel accommodation

Postby Barty60 » Fri Feb 25, 2022 6:46 pm

An employee works from home. His base (according to contract). Once a week the employer requires him to go to London to attend office.The employer will pay the overnight hotel expenses. My question is the hotel expenses deemed to be a benefit in kind?

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Hotel accommodation

Postby darthblingbling » Fri Feb 25, 2022 11:50 pm

If it's regular then likely it's deemed a permanent workplace and the accommodation would be treated as a benefit yes. It is fairly grey however, depends what each visit is for.

bd6759
Posts:4254
Joined:Sat Feb 01, 2014 3:26 pm

Re: Hotel accommodation

Postby bd6759 » Sat Feb 26, 2022 1:12 am

It’s not grey. The rules are very clear :-)

Ordinary commuting is not allowable.
Ordinary commuting is travel to a permanent workplace.
A permanent workplace is a place that is not a temporary workplace.
A temporary workplace is a place that you attend for a task of limited duration, or for some other temporary purpose.

(There are also some other rules that deem a workplace not to be a temporary workplace).

It’s the “task of limited duration, or for some other temporary purpose” that catches this scenario..

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Hotel accommodation

Postby darthblingbling » Sat Feb 26, 2022 8:47 am

Well that's what I was trying to say, if each visit is for a defined task or temporary purpose then it may be treated as a temporary workplace. The facts as they are show it is likely a permanent workplace as it appears he's just doing the day to day job once a week in London. But just wanted to highlight it can be grey, I regularly see the big 4 get this wrong.

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Hotel accommodation

Postby darthblingbling » Sat Feb 26, 2022 8:50 am

Also should point out if the company is simply reimbursing the hotel costs then it's table earnings subject to PAYE and Class 1 NIC through the payroll, not a benefit.

Barty60
Posts:2
Joined:Fri Feb 25, 2022 6:41 pm

Re: Hotel accommodation

Postby Barty60 » Sun Feb 27, 2022 10:13 pm

Thankyou all for your feedback.


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