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.
- Payroo Employer allowance query 65 1
- non resident receiving UK dividends 163 2
- Underpaid National Insurance 78 1
- Career Advice 132 2
- Keep receiving RTI late submission notice 37 1
- Wrong career 191 8
- Other forums 83 1
- Adjusting over-provision of Corporation Tax in previous year 207 6
- Producing graphical KPI's etc 95 3
- Agent with HMRC 264 11
- Quarterly PAYE 269 8
- Would this save hours of your time? 189 4
- Small employers paying people when sick thanks alot! 2,882 29
- bookkeeping for interest & dividends 182 3
- Auto Enrolment & Moneysoft 564 4
- Newsletter 246 5
- RTI Filing 1,766 22
- Fee's for P11D's 320 5
- reporting salary? 188 3
- Payroll software : RTI submissions 332 16
- Residential Property Purchase Above £750K 774
- Using Sage with Sofa Categories 528
- Does anyone have an unwanted ICAEW wooden plaque? 394
- Goods shipped inter EU and VAT Reporting 280
- Non-Resident Director - UK Tax Position? 221
- Sage 200 and Access Dimensions reviews 218
- Director Loan account operation 215
- transferring simply accounting 2010 from xp to windows 7 208
- Free Tax Legislation? 202
- vat return 179