As a Limited Company we currently rent a private property from a landlord (totally independent of our company) for employees to use when working away from home in another city. What are the advantages for our company to buy a property for the employees to use for work purposes only? Are there any tax implications for the employees (i.e. benefit in kind)?  I would imagine not as they would otherwise be submitting expenses for Hotels or B&B’s? What else should I be aware of?

Arthur Weller Replies:
The case of Elwood v Utitz (42TC482) is relevant here. A Northern Ireland company director frequently needed to visit London on business. In order to obtain cheaper accommodation on business trips he subscribed to a London club. This brought the use of other facilities, such as a swimming pool and squash court but Mr Utitz did not use these facilities and only paid the subscription to get accommodation. The Courts held that these other benefits were purely incidental to the true business purpose and allowed a deduction.
See http://www.hmrc.gov.uk/manuals/eimanual/EIM31664.htm.  As for the employees, you ought to have a dispensation in place for them.