Company Let Accommodation for Contractors, How It Works and How to Book

What Is a Company Let for Contractors?

A company let is a short-term or extended-stay accommodation agreement where the contracting company, not the individual worker, is the named party on the booking and is responsible for payment.

In practice this means: the company signs one accommodation agreement covering all properties and personnel; invoices are issued to the company's accounts department monthly; individual workers do not need to book, pay upfront, or claim accommodation as a personal expense.

Company lets are the standard model for principal contractors and Tier 1 infrastructure companies booking accommodation for site teams. They are significantly more efficient than individual bookings, both for the company's finance team and for the workers themselves.

Benefits of a Company Let vs Individual Bookings

The case for company let accommodation over individual bookings is straightforward:

Administrative efficiency: One contract, one invoice per month, one account manager. Versus 10 individual bookings, 10 sets of receipts, 10 expense claims, and 10 different cancellation scenarios.

Better rates: Company lets on monthly terms typically attract better rates than individual bookings on nightly terms. The volume and certainty of a company let gives the provider confidence to offer a discount.

Continuity when personnel change: When a crew member leaves and a new person joins, a company let continues unchanged. The company notifies the provider, updates the occupant, and the billing continues without interruption. Individual bookings require cancelling one booking and making another.

HMRC compliance: Accommodation booked in the company's name for employees working at a temporary workplace is a legitimate company expense. Individual accommodation booked by employees and claimed back as expenses is also allowable but creates more administrative friction. A company let removes any question about the nature of the payment.

Liability and damage: In a company let, the company is the responsible party for the property. This is clearer than individual bookings where the question of who is responsible for a deposit or damage claim can be ambiguous.

How Company Let Accommodation Works in Practice

Step 1, Contact the accommodation provider with your requirements: team size, site location, start date, approximate duration, number of vehicles requiring parking, and invoicing contact details.

Step 2, Receive options and agree terms: the provider presents a shortlist of properties suited to your team. You agree the properties, pricing, start date and notice periods.

Step 3, Sign a company accommodation agreement: a single agreement in the company's name covering all properties. This replaces multiple individual tenancy agreements.

Step 4, Workers check in: keys or access codes are provided directly to the crew. No credit card required from individual workers. No deposit held against individual employees.

Step 5, Monthly invoicing: the provider issues a monthly invoice to the company's accounts payable contact. The invoice covers all properties and all personnel, one line-by-line breakdown.

Step 6, Manage changes: as crew numbers change, properties are added, removed or swapped under the same company agreement. Changes are managed by the provider with the project manager or site administrator, not by individual workers.

VAT and Tax Treatment of Company Let Accommodation

Company let accommodation costs are treated as a business expense for the contracting company. Key tax considerations:

Corporation tax: Accommodation costs for employees temporarily working away from their permanent workplace are allowable deductions for corporation tax purposes. The company books the accommodation, there is no taxable benefit in kind for the employee (as long as the employee would not have chosen to live in that area otherwise).

VAT: Accommodation provided by a VAT-registered provider is typically subject to 20% VAT. If your company is VAT-registered, you can reclaim the input VAT on accommodation costs where the stay is for business purposes. This effectively reduces the cost by 16.7%.

IR35 and contractor tax: For contractors operating through personal service companies (PSCs), the tax treatment depends on the working arrangement and IR35 status. If the PSC is paying for accommodation at a temporary workplace, this is generally an allowable business expense of the PSC. Consult a specialist contractor accountant if in doubt.

What to Look for in a Company Let Accommodation Provider

Not every accommodation provider has the systems to handle proper company let arrangements. Key things to look for:

Company-name agreements: The provider should be able to issue an accommodation agreement in your company's name, not as an individual tenancy.

Consolidated monthly invoicing: A single invoice per month with all properties and all personnel itemised. If the provider can only offer individual property invoices, it defeats much of the administrative benefit.

Account management: A named contact at the provider who understands your project and can handle changes, extensions and additions without starting a new booking process each time.

Flexible terms: Project programmes change. The agreement should accommodate extensions, personnel changes and early exit without punitive penalties.

Overnightly provides company let arrangements for construction companies, infrastructure contractors and project management firms across the UK. We issue consolidated monthly invoices, sign agreements in your company name, and assign a named account manager for the duration of your project.

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