Charge for use of premises

Charge for use of premises

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My client is a sole trader who as a plant hire operator owns plant and vehicles which he hires out to his Ltd Company. Once a month he invoices a hire charge, subject to Vat, across to his Ltd Company. As a sole trader he has now acquired freehold premises financed with a loan incurring interest. which comprise offices and a yard where the plant is kept. The monthly charge now needs to include a charge for the Ltd Company's occupation of the offices and yard. Does this have to be by way of a rental agreement and the formality of a lease or can it be done by way of a monthly service charge?
Simon Goodrich

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By pawncob
20th Feb 2009 16:28

Informal
You don't NEED a lease, but it does formalise things. If you're happy with flexibility of a monthly licence, then go for it.

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