Can some one confirm what a Director of a company can claim for regarding the home/office allowance please? Just read something about this but I have a feeling its out of date and can't find any up to date info.
£4 per week if they dont want to keep any back up.
If the do then they can only charge additional business cost re heat and light and telephone calls/internet.
To charge for mortgage int/rent/insurance/council tax etc they would need to enter a rental agreement with the ltd company and charge a commercial rate for the area of the house that is used for business. They would need to declare this rental income on their personal tax return but could offset appropriate costs to reduce the profit on rental.
Thank you....could the rental agreement be back dated to cover a previous financial year and is it a formal document or can you draft something your self? I ask because I think my client may suggest this.
Be a bit careful of a formal rental agreement - you are opening something of a can of worms! If the company formally rents a room, that room is liable for business rates! The possible 'income' to cover a percentage of mortgage, etc... could be eaten away by a greater charge.
Also, doesn't this lead to problems should your chap ever want to sell his home - he would be liable for capital gains on a percentage of the sale surely?
