Rent as a business expense Rent as a business expense
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  1. #1

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    yonyonson has no reputation


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    Default Rent as a business expense

    Hello all,

    Newbie here and to the world of contracting.

    I started back in March this year. I have registered my personal residence as my business address, although I work onsite for the contracting role.

    Am I able to claim my rent (which is both my personal and business residence) as a business expense? I could change my work patterns slightly as there is an option to work from home on occasions (which is my business address in this case), or will HMRC say this is illegal / not a business expense?

    Also, can I claim back personal expense (from my limited company) for the rent that I have paid so far since March?

    Many thanks in advance for any advice / help, and apologies if this has been posted before.

  2. #2

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    SimonMac is a fount of knowledge

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    Quote Originally Posted by yonyonson View Post
    Hello all,

    Newbie here and to the world of contracting.

    I started back in March this year. I have registered my personal residence as my business address, although I work onsite for the contracting role.

    Am I able to claim my rent (which is both my personal and business residence) as a business expense? I could change my work patterns slightly as there is an option to work from home on occasions (which is my business address in this case), or will HMRC say this is illegal / not a business expense?

    Also, can I claim back personal expense (from my limited company) for the rent that I have paid so far since March?

    Many thanks in advance for any advice / help, and apologies if this has been posted before.
    No
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  3. #3

    Still gathering requirements...

    NCOTBAC is good enough for Jehovah!


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    No.

  4. #4

    Should post faster

    MonkeysUncle is too good to be a permie


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    From what I remember you also need written permission from your landlord if you are going to register a business where you are renting.
    I know some rental contracts do not allow this as well. Worth checking.

  5. #5

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    ladymuck is NOT a disguised employee

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    Pretty much no rental contracts allow a business to be registered. I go ahead and do it anyway as my accountant doesn't offer registered office service. I keep meaning to find an alternative solution but am too lazy.
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  6. #6

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    Quote Originally Posted by ladymuck View Post
    Pretty much no rental contracts allow a business to be registered. I go ahead and do it anyway as my accountant doesn't offer registered office service. I keep meaning to find an alternative solution but am too lazy.
    Can't see how they'd find out or what they'd do if they did, tbh.

    I never asked on my old rental *shrug*. Of all the things to worry about in life, I'm not going to add that one.

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    Quote Originally Posted by vwdan View Post
    Can't see how they'd find out or what they'd do if they did, tbh.

    I never asked on my old rental *shrug*. Of all the things to worry about in life, I'm not going to add that one.
    I do a bit of my own digging on my tenants from time to time which includes searching the address and them as directors so would be pretty easy to spot. Not had an issue to date but I'd certainly have an issue if my property appeared as a registered address.

  8. #8

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    Quote Originally Posted by NCOTBAC View Post
    I do a bit of my own digging on my tenants from time to time which includes searching the address and them as directors so would be pretty easy to spot. Not had an issue to date but I'd certainly have an issue if my property appeared as a registered address.
    Just out of interest, why is it an issue?
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  9. #9

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    I used to rent an office for my business, for about 11 years, and yes it was a tax deductible expense (obviously). If it's also a private residence, then maybe not. If outside IR35 then I would have thought you could claim a % of the rent. What does your accountant say?

  10. #10

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    MonkeysUncle is too good to be a permie


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    It depends on the nature of business. As long as it doesn't cause too much disturbance or rack up the bills you can.

    https://www.simplybusiness.co.uk/kno...ntal-property/

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