GeoffL
Full Member
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Two scenarios:I don't think so. Joe Bloggs is earning money renting his personal motorhome out, so it is taxable. It doesn't matter who it's being rented to.
- Joe Bloggs rents his motorhome to his Ltd. Co.
Joe Bloggs is liable for income tax on the hire fees and might be liable for class 2&4 NICs on those fees. The Ltd. Co. can offset the hire fees against corporation tax. - Joe Bloggs makes his own arrangements for welfare facilities and claims expenses for this.
As for all allowable business expenses, Joe Bloggs is not liable for income tax on those expenses provided they are at a scale HMRC deem reasonable. As with other employee expenses, the Ltd. Co. can offset against corporation tax but will probably need to submit P11Ds and possibly pay class 1A NICs on any deemed benefit in kind. That said, employees providing their own welfare facilities isn't something explicitly covered by HMRC guidance AFAICT. However, a dispensation from reporting might be available if, for example, this could be considered included under 'uniform and tools for work' -- again, this is something to discuss with an accountant IMO...
You do not rent your car out when you use it for business travel. In the same way, you do not rent your motorhome out when you use it so you, personally, have the welfare facilities required by H&S rules.
How to complete P11D and P11D(b)
Find out what you must show on P11D and P11D(b) to declare your company's expenses, benefits and Class 1A National Insurance contributions.
www.gov.uk
Expenses and benefits for employers
If you're an employer and provide expenses or benefits to employees or directors, you might need to tell HMRC and pay tax and National Insurance on them
www.gov.uk