Office rent expenses

**northernladuk** · 4 May 2016, 15:27

How can the whole flat be an expense if you are only using the office? The costs to the business have suddenly gone up from £56 a month to £350 a month for no apparent reason?

They way you've worded it looks very cloak and dagger and difficult to understand so I can't help thinking something is a bit underhand here.

I assume from the £14 per week you are based from home a majority of the time?

You have your business registered at an address where someone else can rent it out? Doesn't sound right that.

Do we assume for this £350 a month you'll be living in it as well?

**Kenny@MyAccountantFriend** · 4 May 2016, 15:35

Something seems a bit if here. Why would you pay £350 a month for a registered office address if not used as an actual office or for living purposes?

**TheCyclingProgrammer** · 4 May 2016, 15:39

I suppose on one hand, they can charge what they like for use of the address and it would probably be tax deductible for YourCo as its wholly and exclusively for business purposes (on the face of it).

What you've been previously claiming for use of home isn't really relevant because there's a difference between you (a director) claiming expenses from YourCo for use of home and YourCo paying some form of rental/lease to a third party for use of a registered office address.

Whether it would be sensible to pay such a ridiculous amount of money for use of the address is an entirely different thing. Being tax deductible only saves you the CT, you're still paying over the odds.

What aren't you telling us?

**garnet** · 4 May 2016, 15:41

Nothing is weird.
I can not use it anymore and can not live there. This is by law.

I will also be working all over the place (UK and not) in the future.

But for the luxury to use it as business address and receive letters there they want to charge me £350. They will also process the letters.

So far only one room was expensed, in future it is the service, same as Registered Company Address - Mail Boxes Etc. UK and Ireland

Yes, it is obvious rent increase, but if I am OK with this, will HMRC challenge it.

**northernladuk** · 4 May 2016, 15:45

Do you not think you are having your pants pulled down at £350 per month for opening letters?

Nearly 4K a year? Are you really sure there isn't a better solution?

You could use this service for like £200 per year and have them forward it to a company offering virtual secretarial services. I can't believe it's going to cost 4k+ a year with a hope your landlord does it.

https://www.smallfirmsservices.com/s...orwarding.aspx

It still smells fishy.

Will HMRC wonder why someone is paying nearly 4k a year to open mail? Damn straight they will.

**Louisa@InTouch** · 4 May 2016, 15:47

To keep things simple, if you were to pay costs for a virtual office or postal service for your company, this would be wholly and necessary. So therefore allowable.

If the cost of the £350 is only for this service, in my opinion, you could claim this

**stek** · 4 May 2016, 15:49

Originally posted by garnet View Post

Hi all,

until now for my home as office I expense ~£14/week. This is actual cost of it. No problems from HMRC. This is my co's address of business.

From now on the right to use this flat will be granted to someone else, including they can rent it out to whoever they want (liferent). I want to keep this address as business address. I had an agreement that new "owner" will charge me £350/month for the usage of the address. They are registered landlords and will invoice me for that.

Will this be allowable expense and will it raise any red flags? My accountant says it is OK, second opinions?

It's £4 a week, not £14......

**northernladuk** · 4 May 2016, 15:52

Originally posted by stek View Post

It's £4 a week, not £14......

He's saying the actual cost so I guess he's using a percentage of the cost per sq ft or something. In fact, Christ knows what this guy does....

**northernladuk** · 4 May 2016, 15:53

Originally posted by Louisa@InTouch View Post

To keep things simple, if you were to pay costs for a virtual office or postal service for your company, this would be wholly and necessary. So therefore allowable.

If the cost of the £350 is only for this service, in my opinion, you could claim this

But you seriously wouldn't question why one of your clients is paying £350 a month for it?

Office rent expenses