Employee rent in Spain

Discussion in 'Accounts & Finance' started by PDM31, Jun 30, 2020.

  1. PDM31

    PDM31 UKBF Contributor Free Member

    79 2
    Can a Limited company pay the rent for an employee who's going to Spain to visit local businesses to drum up business?

    Timescale is around 1-3 months.

    And if so, is there a limit? The businesses are in and around Marbella Spain so I expect the rent to be around 1500-2000 euros a month.

    What other travel expenses can the Limited company pay on behalf of the employee?
     
    Posted: Jun 30, 2020 By: PDM31 Member since: Jul 10, 2018
    #1
  2. atmosbob

    atmosbob UKBF Ace Free Member

    4,464 1,053
    If its 100% business trip it can claim 100% of the expenses.
     
    Posted: Jun 30, 2020 By: atmosbob Member since: Oct 26, 2009
    #2
  3. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,039 889
    Limited company can contract and pay for whatever it likes - employee rent, holidays, golf/health club membership etc.

    Its what you declare on form P11D as a taxable benefit or put through the payroll that counts.
     
    Posted: Jun 30, 2020 By: UK Contractor Accountant Member since: Sep 18, 2013
    #3
  4. PDM31

    PDM31 UKBF Contributor Free Member

    79 2
    So the company can pay for rent, flight etc out of company account, then anything else that comes up relating to work the employee can pay (keep receipts etc and claim back later).

    Where can i find out how much the employee can claim for food/drink expenses each day whilst there?
     
    Posted: Jun 30, 2020 By: PDM31 Member since: Jul 10, 2018
    #4
  5. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,039 889
  6. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,039 889
    Spain
    All rates are in euros (unless otherwise stated).

    Barcelona, Spain

    Subsistence Type
    Rate
    Over 5 hours 28
    Over 10 hours 76
    24 hour rate 101.50 plus room rate
    Room rate 176
    Breakfast 20
    Lunch 24.50
    Dinner 44.50
    Other 0
    Drinks 7
    Hotel to office 5.50
    Total residual 101.50
    Madrid, Spain

    Subsistence Type
    Rate
    Over 5 hours 32
    Over 10 hours 86
    24 hour rate 114.50 plus room rate
    Room rate 172.50
    Breakfast 23
    Lunch 29.50
    Dinner 51.50
    Other 0
    Drinks 5
    Hotel to office 5.50
    Total residual 114.50
     
    Posted: Jun 30, 2020 By: UK Contractor Accountant Member since: Sep 18, 2013
    #6
  7. PDM31

    PDM31 UKBF Contributor Free Member

    79 2
    Thanks, I was thinking of paying for the rent out of the company and flights etc, and giving the employee the company credit for the rest of the expenses whilst there.
     
    Posted: Jun 30, 2020 By: PDM31 Member since: Jul 10, 2018
    #7
  8. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    6,134 2,012
    Hopefully the trip will result in income for the company as HMRC will take a dim view if there were no results to justify the expense
     
    Posted: Jun 30, 2020 By: Ian J Member since: Nov 6, 2004
    #8
  9. PDM31

    PDM31 UKBF Contributor Free Member

    79 2
    This employee generates around £20-30k a month for the company at the moment from his current clients (in UK) and whilst in Spain he can also work online to get more clients from other places. Some clients respond online better whereas others want face to face meetings.
     
    Posted: Jun 30, 2020 By: PDM31 Member since: Jul 10, 2018
    #9
  10. simon field

    simon field UKBF Big Shot Full Member - Verified Business

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    Unless nobody wanted to do business of course!
     
    Posted: Jun 30, 2020 By: simon field Member since: Feb 4, 2011
    #10
  11. PDM31

    PDM31 UKBF Contributor Free Member

    79 2
    Yes true.
     
    Posted: Jun 30, 2020 By: PDM31 Member since: Jul 10, 2018
    #11
  12. Darren_Ssc

    Darren_Ssc UKBF Ace Free Member

    1,093 314
    Forgive me for making broad generalisations but I lived/worked in Spain for 3 years and getting a response to an email was a rarity. For this reason alone, the travel is justified.
     
    Posted: Jun 30, 2020 By: Darren_Ssc Member since: Mar 1, 2019
    #12
  13. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    6,134 2,012
    I'm off to Spain in August and will use the reasons given in your post as justification to charge the flights and villa rental to my company against tax as I'm looking to set up a Spanish office :D
     
    Posted: Jun 30, 2020 By: Ian J Member since: Nov 6, 2004
    #13
  14. atmosbob

    atmosbob UKBF Ace Free Member

    4,464 1,053
    Surely this government is in favour of being "Global Britain"? HMRC can hardly take a dim view.

    In the past I've put loads of business trips against tax and never had a problem with HMRC. As a photographer my business trips have taken me to Madeira, Greece, Thailand, Bali etc etc etc.
     
    Posted: Jun 30, 2020 By: atmosbob Member since: Oct 26, 2009
    #14
  15. PDM31

    PDM31 UKBF Contributor Free Member

    79 2
    Yes but a company doing it for an employee is different to the Director doing it surely?
     
    Posted: Jun 30, 2020 By: PDM31 Member since: Jul 10, 2018
    #15
  16. simon field

    simon field UKBF Big Shot Full Member - Verified Business

    4,621 1,692
    No, the director is an employee of the company.
     
    Posted: Jun 30, 2020 By: simon field Member since: Feb 4, 2011
    #16
  17. Argentum Tax

    Argentum Tax UKBF Contributor Free Member

    87 17
    It is quite possibly easier to justify certain expenses claimed by a director although he or she is, as you say, an employee.
     
    Posted: Jun 30, 2020 By: Argentum Tax Member since: Aug 24, 2015
    #17
  18. PDM31

    PDM31 UKBF Contributor Free Member

    79 2
    Yes I know the Director is still an employee but as they are the one making the decisions surely it would be more likely they would be using travel expenses for their own personal pleasure rather than it being just an normal employee.

    Hence the HMRC would possibly take a closer look at the case if it was a Director:
     
    Posted: Jun 30, 2020 By: PDM31 Member since: Jul 10, 2018
    #18
  19. Argentum Tax

    Argentum Tax UKBF Contributor Free Member

    87 17
    Yes I agree. But in the event of challenge it could be easier to justify some expense claims for a director, because he or she has the seniority, than it would be for a non-director employee’s claims.
     
    Posted: Jun 30, 2020 By: Argentum Tax Member since: Aug 24, 2015
    #19
  20. PDM31

    PDM31 UKBF Contributor Free Member

    79 2
    Ahh yes I get it. I think that’s why I’m going to pay for the major expenses directly out of the company first like flights, rent etc.
     
    Posted: Jun 30, 2020 By: PDM31 Member since: Jul 10, 2018
    #20