Benefit in kind, corporate apartment
Discussion
Not sure if this is the correct place but here goes.
I'm working away from home staying in a hotel 4 nights per week. Eventually (within 12 months) I want to move where the job is.
Our corporate policy allows a conversation about renting an apartment if the total cost is similar or less than the equivalent hotel cost per month.
I plan to stay over alternate weekends in the apartment to help with a property search and eventual move.
Assuming £2000 in expenses, what will the tax liability be for the use of such property as a benefit in kind?
I'm working away from home staying in a hotel 4 nights per week. Eventually (within 12 months) I want to move where the job is.
Our corporate policy allows a conversation about renting an apartment if the total cost is similar or less than the equivalent hotel cost per month.
I plan to stay over alternate weekends in the apartment to help with a property search and eventual move.
Assuming £2000 in expenses, what will the tax liability be for the use of such property as a benefit in kind?
I’ve somewhat been in this situation myself - surely the primary purpose of the apartment rental is to give you lodgings whilst you are working the vast majority of the working week in your new location ?
The fact that the company find it more cost effective to source an apartment (rather than a hotel) and this allows you to use the property for the other working day of the week (plus the weekend) won’t give rise to a tax charge.
This situation could perhaps change if it became your primary / single place of residence in the future but on the basis that it’s tied to temporary accommodation for your employment then tax shouldn’t be a consideration.
Assume this is all within the UK / same jurisdiction - as the working in a new jurisdiction for 4 days a week is likely to give more potential for tax consequences (but appreciate this wasn’t your question !).
The fact that the company find it more cost effective to source an apartment (rather than a hotel) and this allows you to use the property for the other working day of the week (plus the weekend) won’t give rise to a tax charge.
This situation could perhaps change if it became your primary / single place of residence in the future but on the basis that it’s tied to temporary accommodation for your employment then tax shouldn’t be a consideration.
Assume this is all within the UK / same jurisdiction - as the working in a new jurisdiction for 4 days a week is likely to give more potential for tax consequences (but appreciate this wasn’t your question !).
chrisdk said:
.
This situation could perhaps change if it became your primary / single place of residence in the future but on the basis that it’s tied to temporary accommodation for your employment then tax shouldn’t be a consideration.
If/when we sell our house, I agree I then cover all costs so the problem of tax goes away. This situation could perhaps change if it became your primary / single place of residence in the future but on the basis that it’s tied to temporary accommodation for your employment then tax shouldn’t be a consideration.
At worst would it be
2000/7. X 3 x40% (342ish)
Bowks said:
Not sure if this is the correct place but here goes.
I'm working away from home staying in a hotel 4 nights per week. Eventually (within 12 months) I want to move where the job is.
Our corporate policy allows a conversation about renting an apartment if the total cost is similar or less than the equivalent hotel cost per month.
I plan to stay over alternate weekends in the apartment to help with a property search and eventual move.
Assuming £2000 in expenses, what will the tax liability be for the use of such property as a benefit in kind?
Who will be the tenant of the apartment, you or your employer?I'm working away from home staying in a hotel 4 nights per week. Eventually (within 12 months) I want to move where the job is.
Our corporate policy allows a conversation about renting an apartment if the total cost is similar or less than the equivalent hotel cost per month.
I plan to stay over alternate weekends in the apartment to help with a property search and eventual move.
Assuming £2000 in expenses, what will the tax liability be for the use of such property as a benefit in kind?
Back in 2010 (things might have changed) I moved from 4 days in a hotel to a company rented apartment there was no tax implication for my circumstances, however within a few days I was missing the following:
1. Someone to cook my breakfast and dinner.
2. Someone to clean up after me.
3. Someone going out and doing the shopping for all of the above
4. A gym, swimming pool and 100 acres of grounds to walk around in.
A decent hotel is underrated.
Wills2 said:
Back in 2010 (things might have changed) I moved from 4 days in a hotel to a company rented apartment there was no tax implication for my circumstances, however within a few days I was missing the following:
1. Someone to cook my breakfast and dinner.
2. Someone to clean up after me.
3. Someone going out and doing the shopping for all of the above
4. A gym, swimming pool and 100 acres of grounds to walk around in.
A decent hotel is underrated.
Interesting you say that.1. Someone to cook my breakfast and dinner.
2. Someone to clean up after me.
3. Someone going out and doing the shopping for all of the above
4. A gym, swimming pool and 100 acres of grounds to walk around in.
A decent hotel is underrated.
I've recently started on what will be a multi-year project in the northern part of Cyprus. I worked on a similar project there between 2016 and 2021 made the best part of 25 trips. The same is likely with the new one.
A couple of us on the team started to look into buying a property there. The idea being that our per-diem would more than cover the costs and at the end of the project, we'd have either a holiday home/let or an asset we could sell. Either way, we'd be quids in....in theory.
We decided against it (for now anyway) partly because of the exact same reasons you mentioned. And partly because when the idea was mentioned to our accountant, a) it sounded like the start of a joke... 'So there's this Brit, a Scot and a Bulgarian who want to but a house in north Cyprus......' and b) the look on her face suggested the first words to be uttered by her would be "f
k off'. They were, but the sentiment a little more professionally dispensed! 
Wills2 said:
Back in 2010 (things might have changed) I moved from 4 days in a hotel to a company rented apartment there was no tax implication for my circumstances, however within a few days I was missing the following:
1. Someone to cook my breakfast and dinner.
2. Someone to clean up after me.
3. Someone going out and doing the shopping for all of the above
4. A gym, swimming pool and 100 acres of grounds to walk around in.
A decent hotel is underrated.
On the other hand I much preferred having an apartment to staying in a hotel as I could eat far healthier, do laundry in the week, and leave stuff in the apartment so fly with just a small bag when I went home at the weekend rather than lug everything with me. Granted no pool and gym, but a much better telly and more comfortable sofa 1. Someone to cook my breakfast and dinner.
2. Someone to clean up after me.
3. Someone going out and doing the shopping for all of the above
4. A gym, swimming pool and 100 acres of grounds to walk around in.
A decent hotel is underrated.
In my case the company rented the apartment in thier name and there was no tax liability on me as it was the same as if I was staying in a hotel. It did actually cost me a small amount of money as I was paying for my own groceries rather than eating out all the time and putting it on expenses, but I'd have been doing that if I was home anyway. Having an apartment was a far nicer experience than living in hotels for a year.
Wills2 said:
Back in 2010 (things might have changed) I moved from 4 days in a hotel to a company rented apartment there was no tax implication for my circumstances, however within a few days I was missing the following:
1. Someone to cook my breakfast and dinner.
2. Someone to clean up after me.
3. Someone going out and doing the shopping for all of the above
4. A gym, swimming pool and 100 acres of grounds to walk around in.
A decent hotel is underrated.
I don't disagree with that general premise, however I personally found it much more convenient when the company moved me from a hotel, to an apartment. 1. Someone to cook my breakfast and dinner.
2. Someone to clean up after me.
3. Someone going out and doing the shopping for all of the above
4. A gym, swimming pool and 100 acres of grounds to walk around in.
A decent hotel is underrated.
I can now leave my stuff there: Suits, clothes, shoes, chargers, toiletries, iPad, and so on. Hugely more convenient. I don't even have to take clothes home to wash, as I can just stick it in the washer one night whilst I'm there.
I do have an unfair advantage because it's a serviced apartment, so a cleaner comes in once per week and cleans, sticks the towels in the washer and so on.
The one thing that really annoyed me, even with a decent hotel, was constantly having to ask for an Iron or an Ironing board, as more often than not, it was missing.
I'm in London, and apparently the apartment costs the company £80k a year. Ouch.
For me a "work" apartment far out weighs a hotel, I have lived in hotels off and off for long periods of time for over 10 years but the last 5 years I have been based in the same work provided apartment. The choice of being able to cook and have a base that you dont need to pack up and leave every time you leave the country is critical. I have turned down better money wise jobs due to the fact its back to hotel living, my days of living out a suitcase are done with but again thats only until I have zero other options.
Bowks said:
Eric Mc said:
So the rental agreement is between the landlord and the employee?
Sorry I wasn't clear. Employee tenant
Private landlord
Employee covering costs of rent, power, council tax via expenses.
What happens if you lose your job? Are you stuck renting a flat in your name and your expense?
Whenever my employers have rented a flat for me, they have put everything in their name, and paid all the costs directly. I wasn't involved in the costs in any way.
Eric Mc said:
Bowks said:
Eric Mc said:
So the rental agreement is between the landlord and the employee?
Sorry I wasn't clear. Employee tenant
Private landlord
Employee covering costs of rent, power, council tax via expenses.
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