Home working expenses Limited Company
My client, an architect operates through a limited company.
He has business premises but for some of the year has worked some of the time from his own house on design work for clients.
I'm intending to make a deduction from the limited company as an expense as follows:
Take the proportion of that room used for business as a proportion of the whole house living space X for the number of days so used /365 and apply that:
Heat and lighting cost.
Council tax cost. (Bit unsure on this because do not want to incur business rates ?)
Then invoice this cost from himself to his limited company, therefore reducing his CT profits by this amount.
Include the invoice as income in his personal tax return but offset by the same amount of expense.
Not sure if I may be better off using the HMRC Rate of £4 / week but thats not likely to cover actual costs.
It seems perfectly reasonable to me, but I would be very grateful to hear if this has generally been done by any Acc Web fellow accountants or if it is just likely to generate more bother than its worth.
- Now Scotland has voted "No", when does England get to vote? 808 36
- Shutting down a company with creditors 1,451 30
- Saying goodbye 375 12
- Tax on private fuel for own car 186 5
- Is it possible to retrospectively change the tax year that dividends were paid. 335 16
- Sportman claiming for training kit 988 11
- Flat rate scheme 151 3
- Drop box Storage 181 3
- Is this fraud? 252 4
- Private portion of costs and expenses in Accounts 270 13
- Any Scottish members out there? 11,179 413
- Has HMRC got powers to do this? 615 4
- Furnished lettings criteria 108 1
- Is there an expert in Excel out there? 406 5
- SAGE TRANSACTIONS DATA 118 2
- Pension Contributions Relief 363 11
- Recovering VAT on property purchase 107 1
- Tax on interest received from insurance company 203 2
- Unnecessary S9A Enquiries 306 1
- Naming new company 191 4
- Raiders of the Lost Tax File 1,269
- Chartered Accountant in County Down N.Ireland 452
- National Insurance 352
- Non Resident 266
- Cass 5 FCA Client Money Software recomendation 259
- Franchise income and costs 238
- Hands on experience of Digita 193
- Employer's Helpline 144
- Best way to take money from a business if you have unlimited EIS allowances? 136
- employment capital allowances 135