Reference the above, I have a client you works from home as a graphic designer (ltd), are they able to claim for utilities as part of their expenses???.
Probably not as i imagine the bills will be in the persons name and so the ltd co would be paying their personal expenses, which would create a BIK problem. The Ltd co could pay rent to the person, however, this would need to be delcared on the persons tax return.
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Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
Please may I add an additional question. If the company pays the household rent for office space, would they be liable for business rates on part of their property?
Please may I add an additional question. If the company pays the household rent for office space, would they be liable for business rates on part of their property?
Thank you Sylvia
good point, I have been thinking that this would require the company to pay Business Rates also?. My client doesn't pay business rates, so then probably not best to claim the expenses. She only traded for a short period, so it may not be worth the hassle, if then she has to pay B/Rates.
This only potentially becomes an issue if an area of the house is used exclusively for business, if your kid uses the home office for homework, or you have a fold out bed that guests use etc you can still claim the expenses but not incur business rates.
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
good point, I have been thinking that this would require the company to pay Business Rates also?.
I'm not an expert in this area but something in the back of my mind is telling me that business rates only apply to a property used exclusively for business. If it's basically a domestic residence then the property is subject to council tax.
-- Edited by ADAS on Wednesday 12th of October 2011 01:26:16 PM
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
Is it possible to take advantage of the Rent A Room scheme, whereby the tennant is the Ltd co?
I have a feeling it isn't, but I can't remember why I think that. However under the system detailed on the link you don't make a rental profit anyway so there is no need to use any type of allowance.
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
good point, I have been thinking that this would require the company to pay Business Rates also?.
I'm not an expert in this area but something in the back of my mind is telling me that business rates only apply to a property used exclusively for business. If it's basically a domestic residence then the property is subject to council tax.
-- Edited by ADAS on Wednesday 12th of October 2011 01:26:16 PM
This only potentially becomes an issue if an area of the house is used exclusively for business, if your kid uses the home office for homework, or you have a fold out bed that guests use etc you can still claim the expenses but not incur business rates.
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
