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.
- I hate HMRC's voice recognition system - The Inept Interrogator 346 11
- Your fondest calculator memories 158 7
- Joint filing delays 13 1
- Anyone having problems with IRIS OpenSpace? 23 2
- Can't understand my own electricity / gas bills 169 5
- Free-standing washing machine - unfurnished lettings 1,256 18
- RTI - EPS - ??? 225 3
- Sub-contractor provided with a vehicle 144 5
- Partner with an IVA 45 3
- Can Directors be removed without consequence? 216 4
- Growing pains 314 6
- Owner/Director consultant plus employment elsewhere 176 6
- Does Freeholder have to be director of our RTM Company? 134 7
- Free Agent - Payments on Account 504 13
- Breach of employment contract 151 3
- Benefit of my ACCA membership to my Non Qualified Employer 403 7
- HMRC Penalties - are they enforceable? 773 31
- Offset Self-Employed Losses against PAYE 103 3
- Legal Advice Needed Bank Account Blocked 840 13
- Residents Association Corp Tax 152 4
- DTR : TIOPA 2010 Section 42 440
- CTA study material 401
- Sect 102 TMA 1970 296
- Sage Forecasting - Print filename 270
- Pre incorp expenses 259
- Relief on French Tax Deposit? 233
- Anyone have clients that use Pay4Later to offer customers credit? 225
- Slight twist on employment related securities 202
- How to claim additional losses after mistake in CT return 169
- What is the tax position if I am working overseas but via a UK agency? 162