Lodger as A limited company

Bookworm105

Crowmo said:

Bookworm105 said:

Crowmo said:

DullGreyGuy said:

Crowmo said:

I work as a locum via a limited company and genuinely do half my shifts near my home and the other half near my parents in law 50 miles away.
i do stay at my parents in law and give them money for general lodging etc for nights I do shifts there.
could the limited company pay for these
lodgings costs as the travel and accommodation is genuinely 100% for buisness( would not go there otherwise)
then my parents in law could claim up to 7,500 tax free in terms of rent a room relief?

thanks in advance 

If the in-laws weren't living there, what would you do?

Are the shifts on consecutive days so you are saving on travel costs or are they on separate days so still incurring 100 miles travel each time?

How long have you been working at this place? How long left on the contract?

thanks for input.
to clarify.

being able to travel to that side of london ( yes the 50miles is mostly M1/M25- so in rush hour would be a horrendous round trip) so overnight accomodation has been 100% neccessary given the hours I work- allowed me to increase income by at least double.
i would maybe have to had look at Airbnb/hotels but these in london are not cheap and the inlaws would be much more cost effective.
the shifts are never long term,no contract all ad hoc, sometimes consecutive.sometimes not.
if there was no shifts I would not travel and stay so only travel and accomodation for buisness purposes.
the point is i could pay a random Airbnb or pay my inlaws to get same outcome for me 
so should be expensable to buisness right?
thanks

you need to talk to your accountant
just because you have a Ltd does not necessarily mean your travel and accommodation costs are claimable.
the overarching principle is that you must be going to a temporary workplace for a task of limited duration 

although you are on locum work, it appears you have 2 normal places of employment: near home and 50 miles away. It appears, at face value, you simply have 2 part time jobs?
Travel to either could be classed as ordinary commuting since there is a clear pattern to and predictability of the workplaces.
Potentially, although I assume subject to a contract termination date, neither workplace is "temporary" and therefore may not be allowed as travel and subsistence costs at all.

what do you class as your normal place of employment?
if you claim it is your home and therefore you undertake zero "ordinary commuting" you need to make sure your accountant is very happy with that position as it has significant repercussions .

accountant is happy with the situation but just wanted some outside opinion.

then please leave it to your accountant as business travel can be quite complex and there are multiple legal cases setting precedents for specific circumstances of which your accountant knows your precise details and therefore can assess against them

for example one case defined the worker as being based in a geographical area comprising multiple clients in the area and therefore travel from home to the boundary of the area is ordinary commuting since the worker chose to live a considerable distance from the boundary. 

but to return to your question, the lodger is you, not your Ltd company. You may claim expenses off your ltd Co, but as others say above, whether that cost is allowable for corporation tax is a matter for your accountant

as for parents in law, yes they could claim rent a room allowance against any money you pay them for staying there

Savvy_Sue

Just to make it very clear: 

Grumpy_chap said:

Crowmo said:

accountant is happy with the situation

<snip>

Your Accountant, however, will have looked at the full situation in proper detail and given appropriate advice which you can rely on.  You can be sure that the Accountant will have given the advice having one eye on the potential for a PI claim should the advice be incorrect.  No-one in the forum has to worry about such matters.

"Advice which you can rely on" is the kind you pay a professional for, in the assurance that you can sue the pants off them if their advice turns out to be wrong. And a potential Professional Indemnity Claim is what your accountant will have an eye on, should his advice turn out to be wrong. 

Advice on this forum can never be relied on, even if someone claims to be a professional, because you're not paying for it.