Snowed under

Our client operates his accountancy business as a one-man limited company.

His office is some distance from home and due to the recent deep snow our client had to stay in a nearby hotel for a few nights in order to get into his business premises and prepare and submit self assessment tax returns by the filing deadline.

Are the hotel accommodation and associated subsistence costs allowable?

The company also wishes to rent a flat for the director. This will cost about £600 per month. What will be the associated benefits in kind? Might this be treated partly as office accommodation if he works there in the evenings and meets clients there after work?

Also would there be a National Insurance charge of any type on the accommodation?

Advice would be gratefully received.

Query 17 547 – Nanook

Reply from Socrates

The expenditure incurred by the company on hotel...