Readers’ forum: Director’s overseas hotel and subsistence expenses

I have a client who trades through a limited company and is a sole director.

He has been working abroad through his UK registered company for the past 20 months although he was resident in the UK in 2019-20. He was non resident during 2020-21 and has not made any visits to the UK in the current tax year.

He is acting for a few clients overseas in the UAE and contract/project assignments are short term. I do not believe he is caught by the provisions of IR35 as he has been free to determine how he does the work and has been subcontracting aspects of work billed to the client.

My concern is that his company has been paying for his hotel accommodation and subsistence and I am wondering what the tax implications are for himself and his company.

I am assuming once he has stayed in the UAE...