Is lodging/staying with family and friends whilst on business a business expense?

Discussion in 'Accounts & Finance' started by k3n7, Dec 8, 2018 at 8:53 PM.

  1. k3n7

    k3n7 UKBF Contributor Free Member

    37 2
    When I was an employee, when travelling on business, if i staying with friends or family, that was a claimable expense.

    Cheaper and more convenient than a hotel, and the company had an agreed rate to pay the friend or family for their troubles

    Is such thing an expensible charge to my business. what would be an affable rate & how do I record the transaction? (receipt ?)?
     
    Posted: Dec 8, 2018 at 8:53 PM By: k3n7 Member since: Jul 26, 2018
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    14,037 2,993
    If you are a sole trader you can claim for any expenditure you incur wholly and exclusively for the purposes of your trade.

    So if you pay the family a reasonable fee for board and lodging, you can claim it as a deduction, and they will probably be covered under rent-a-room.
     
    Posted: Dec 8, 2018 at 10:12 PM By: Scalloway Member since: Jun 6, 2010
    #2
  3. k3n7

    k3n7 UKBF Contributor Free Member

    37 2
    Does the same apply for a small ltd ?
     
    Posted: Dec 9, 2018 at 1:44 AM By: k3n7 Member since: Jul 26, 2018
    #3
  4. Scalloway

    Scalloway UKBF Legend Free Member

    14,037 2,993
    If you have a ltd company you are classed as an employee. Official HMRC advice is here

    https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim05231

    So it would appear to be the same as my earlier answer -pay the family a reasonable fee for board and lodging, you can claim it as a deduction, and they will probably be covered under rent-a-room.
     
    Posted: Dec 9, 2018 at 9:32 AM By: Scalloway Member since: Jun 6, 2010
    #4
  5. k3n7

    k3n7 UKBF Contributor Free Member

    37 2
    Thanks
    This is very interesting
     
    Posted: Dec 9, 2018 at 8:58 PM By: k3n7 Member since: Jul 26, 2018
    #5