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I would like to ask the opinion on a project
I have at my home a Large Double Garage detached from the main house which I have permission to change into a Home Office
and my Company is registered at my home address
I would like to ask the following
Can my company pay for the conversion of the Garage and claim it as an expense
Can I charge my company for the cost of electric as the property has only one supply so the electric would be shared
Can the Company pay for a cleaner to clean the office space once a week as an expense
I know I could lose Private Property relief if I sold my home on the office But I will not be moving again in my life time
at present I do claim £300 a year for using a bedroom as an office but this is becoming to small to operate my Company from
what are others thoughts on this topic
Learn Change and Adapt ?????
I normally claim £10 a week for using my home as office.
When my account does my end of year accounts, he normally puts thru some other misc expenses for me (which then gets added to my directors loan account). Its not much - probably a couple of hundred or so, but it all adds up
You are 100% right an employee can claim a small sum of money for home use
I had a chat with my accountant after my post and he confirmed it too
The company can supply furniture Desk Chair ect for the office too
and can also pay for a cleaner
and yes you are right every little adds up
I didn't know I could also claim for the cleaner. What are the rules/limits?
I generally claim for everything else such as IT equipment, stationary, all office furniture etc as these are generally used wholly and exclusively by the Ltd Co
Short answer is yes, co can pay
long answer involves further considerations including business rates, leases, insurance etc.
here we have one of my favourite quirks of company taxation
DL could buy, say, a chair for the office from a local charity shop for a £10, or have a bespoke one made by Eames for £20k and claim either as legitimate expenses / assets of the co
there is no reasonableness test, just the wholly & exclusively for business test
I have an Investment Property in Gib I can fly first class or go Easy Jet to see the property meet agents ect and I can charge it against tax
No Reasonable test as long as I can prove its only for business
For what its worth If im not in a hurry I prefer to drive down but again I claim the millage
The change of the garage to an office that requires construction e.g. brickwork, window, studwork, insulation, plaster boards, plastering, painting. This type of work is not repair or replacement, so I think this cost would go as a capital expense.
I was advised not to blur the construction works for tax reasons if I ever want to sell my home
I was advised to claim a small amount per week for having the office at home only £5.00 a week but the Company can claim the expenses for furniture etc.
So you would not be claiming any of the cost of the construction works against your property income.
When I convert a dwelling to a HMO, most of the cost of the conversion is a capital expense and cannot be claimed as a cost against my rental income. Only like for like replacements and replacements I can claim as costs against my rental income.
The office is an old detached garage next to my house
its not an investment property