I have am about to start contracting and have a query on a rental expense.
I live in my parents house. They have no mortgage. My mum is retired and my dad works abroad and is registered as non-resident so does not pay UK tax.
I pay my mum £400 per month for use of their spare room to run the business from (with computer, desk and company related documents) and use of the house address as the company trading address. Are there any issues with claiming this monthly expense as rental of a room to run the company from? I expect to be buying my own propertly to move into in about a year's time anyway so this would probably only be until around this time next year, after which I would look to use a room in my own property and claim the relevant expenses from that instead. I don't think £400 per month is particularly large, it is below what a room would usually cost to rent in this area.
I live in my parents house. They have no mortgage. My mum is retired and my dad works abroad and is registered as non-resident so does not pay UK tax.
I pay my mum £400 per month for use of their spare room to run the business from (with computer, desk and company related documents) and use of the house address as the company trading address. Are there any issues with claiming this monthly expense as rental of a room to run the company from? I expect to be buying my own propertly to move into in about a year's time anyway so this would probably only be until around this time next year, after which I would look to use a room in my own property and claim the relevant expenses from that instead. I don't think £400 per month is particularly large, it is below what a room would usually cost to rent in this area.
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