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.
- Has anyone read the implications of the Lisbon treaty? 1,251 45
- Why would they want his purchase invoices?? 364 5
- Do I need a smartphone? 35 1
- Redoing accounts for mortgage lender 77 1
- Sage valuing foreign bank balances 328 9
- Unfair charges for self assessment tax returns. Any recourse? 200 5
- 27,000 Really? 1,176 38
- What are options for non CA firm 2,848 60
- Legal title not in the company name 805 23
- Opening Balances 216 2
- Awkward insolvency practitioner 597 7
- Tax Credits for Self Employed 140 1
- FRS12 Redundancy and notice period provision 107 1
- This is getting boring 632 12
- Using profits from Ltd company as start up funds for new venture 274 7
- pension paid by company? 132 3
- inheritance tax 435 12
- pretty multi rainbow -coloured client spreadsheets 358 9
- Sage 50 re-key - VAT problem 234 4
- State pension 308 3
- Property exchange - 8-year legal delay following fall-out 642
- Cancelled 396
- SAGE Payroll Data for Import to MS Dynamics AX 355
- Cancelled 340
- Have you staged yet for auto enrolment? 311
- Probiz 306
- Free-standing washing machine - unfurnished lettings 282
- How not to compose an email 277
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 259
- Phishing emails purporting to be from CIPFA? 224