Is lodge taxable

carjon
carjon Registered Posts: 14 New contributor 🐸
in General accounting discussion
Hi we have a client he is a contractor, he pays his subontractor an amount for 1 or 2 nights lodge, he is determined that this is tax free, however after attending a CPD event over the weekend we were advised that the lodge payment gets included within the hours / days worked and is therefore liable to the 20% CIS deduction. Any comments and views will be greatlly appreciated.
Thanx

Comments

  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    I don't know enough about CIS to answer that one.

    A normal subcontractor would just include the cost of the hotel under allowable expenses so it would be tax free. I don't see why your subcontractor should pay tax?
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    PGM wrote: »
    I don't know enough about CIS to answer that one.

    A normal subcontractor would just include the cost of the hotel under allowable expenses so it would be tax free. I don't see why your subcontractor should pay tax?

    Agreed - any expenses incurred are refundable as long as can be proved it is for the use of business so wont pay tax on the hotel.

    One question when you say lodge do you mean B&B ?

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