Having to put flat for overseas collegue in my name

bootman

Hi

Could I just check please. I work for a company in the UK. Only a few of us and I run it.

We are owned by a very large overseas company.

One of my overseas collegues is going to study in the UK at university part time and be based in the UK office most of the time. Studying
costs are being paid for by the parent company,but the accomadation seems to be a problem. It will be paid by the Uk company and billed back to the parent company as overeas guest expenses.

I have found him a flat but the letting agent will not allow the agreement to be in my companies name . They will not allow it to be in his name as will fail a UK credit check.

I am basically left with the option of putting the 12 month lease in my name and it being paid for by the company each month as it would have been for him.

I do not want to find that I suddenly have a tax problem due to accomadation being paid for that is in my name but not for me!! by my employer

Can a letter signed by the MD who is also based overeas be written just saying in my name but not for my use.

Would this stop any tax issues arrising.

Thank you

telly-addict

As you suspect, this situation would strictly place you with a benefit in kind of the provision of a flat that would be taxable. The overseas colleague living there should have the benefit in kind instead. There needs to be a clear paper trail indicating who lives there so that when the P11Ds are prepared there is back up information for the Inland Revenue, should they need it.

In addition, you would be the leaseholder and with all the responsibilities that entails - if the overseas colleague wrecks the place, it is your name on the lease and you will be responsible.
I find it curious that the letting agent is happy for you to sign the lease but not live there, and for a person not on the lease to live there instead, but not for a company to be signatory to the lease? Surely companies let flats all the time for their employees? Have you tried a different letting agent?

This sounds like a situation with a lot of potential to go pear-shaped!

Bossyboots

telly-addict wrote:

I find it curious that the letting agent is happy for you to sign the lease but not live there, and for a person not on the lease to live there instead, but not for a company to be signatory to the lease? Surely companies let flats all the time for their employees? Have you tried a different letting agent?

This sounds like a situation with a lot of potential to go pear-shaped!

I agree with all this. When my son was renting, his g/f had to go on the tenancy as well as she was going to be staying with him. I could not rent the flat for him and they would not let her stay there unless she signed up.

I think the OP should steer clear of this and get the company to make other arrangements.