Charging your compmany rent for home office

[stphnstevey]

I have read that I can charge my company rent for using part of my home as an office. I would be liable to Income Tax on the rent, but importantly as it is property income, I can deduct costs such as fuel bills, mortgage interest, etc.



This cancelling out the rent and no charge. Is this right?

[BolshieBastard]

Be careful doing this. It gives HMRC access to your home because its also a place of work.

TBH, its not worth the hassle.

[stphnstevey]

My home is the registered address anyway

Why not worth the hassle? - I can take out a reasonable rent per month tax free

[ratewhore]

I can take out a reasonable rent per month tax free

As usual, there are many different trains of thought on this one. Ask your accountant, not us...

[rootsnall]

The no quibble amount you are allowed to claim for this is something really miserly like 100odd quid a year. Anything more and you may attract attention but would more than likely get away with it.

[stphnstevey]

Well if there are many trains of thought, that's why I am asking here! - It would be interesting to hear the Pro's and Con's.

Whats the point in a forum for accounting issues if you always end up with 'go speak to your accountant'? Why is is not just called the 'we will tell you to speak to your accountant' forum...

[stphnstevey]

The no quibble amount you are allowed to claim for this is something really miserly like 100odd quid a year. Anything more and you may attract attention but would more than likely get away with it.

Can you not charge a reasonable commercial rent for your area? £100 or £10 month is very cheap rent - where do you live?

[pmeswani]

Well if there are many trains of thought, that's why I am asking here! - It would be interesting to hear the Pro's and Con's.

Whats the point in a forum for accounting issues if you always end up with 'go speak to your accountant'? Why is is not just called the 'we will tell you to speak to your accountant' forum...

If you want to get more than what is acceptable, then you need to speak to your accountant on how best to get that money and call it "Rent". We can't advise you on this, as you can hold us to account. It is accepted practice to claim a nominal fee of something like £3 a month for the use of your home space for the purpose of running your business. If you believe this is not a true reflection, then you need to consult your accountant for more options. We do not know what you financial circumstances are. We discuss issues relating to accounting, but not give out advice on how to run ones business.

[stphnstevey]

That is easy then - comment on the legislation and how it applies to anyone's business and not it's reference to how I could apply it to my specific business and then I could never hold any one accountable (not that I ever would!).

I don't expect anyone to advise me in place of an accountant, but it does beg the question, why post if you are just going to be reffered to an accountant - no offence to the poster that did, I respect their posts and they have been extremely helpful on other posts.

I beleive the £3 allowance is slightly different to this - here as the director is receiving property/rental income they declare it as such. Just as renting out a complete property, you can offset that income against the expenses of renting that property (eg proportion of mortgage, bills, insurance etc)

There is wider acceptabilty of rental property expenses than someone claiming expenses for a home office

I hope I have made the distinction clear?

[pmeswani]

That is easy then - comment on the legislation and how it applies to anyone's business and not it's reference to how I could apply it to my specific business and then I could never hold any one accountable (not that I ever would!).

I don't expect anyone to advise me in place of an accountant, but it does beg the question, why post if you are just going to be reffered to an accountant - no offence to the poster that did, I respect their posts and they have been extremely helpful on other posts.

I beleive the £3 allowance is slightly different to this - here as the director is receiving property/rental income they declare it as such. Just as renting out a complete property, you can offset that income against the expenses of renting that property (eg proportion of mortgage, bills, insurance etc)

There is wider acceptabilty of rental property expenses than someone claiming expenses for a home office

I hope I have made the distinction clear?

If you were renting a place outside your home, then you may be able to claim the cost of your rent. However, renting your home back to your company may not be exempty under Capital Gains.... so that is why you should be speaking to your accountant who may be able to point you in the right direction. I can't find the specific details on the net right now... but your accountant should know the specifics... at the end of the day... what are you paying your accountant for?