Room rental business expense

Room rental business expense

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I currently use an office in my parents home for all paperwork etc, (i do not live there) it is a mortgaged home, they would like me to pay £150 per month in rent for this use. Is there any way this could due a business expense? Obviously I need to try and find the most sensible solution (tax wise) for this. I wouldn't want them to have to declare this as an "income".

By the way this is a ltd company.
 

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By Siany
14th Feb 2012 21:10

 

 

The answer is yes, it is tax deductible against your business, your parents would however need to declare it in their self assessment at year end under property income.  They can offset the income against allowable expenditure by apportioning some utility costs and mortgage interest against it.

 

I'm sure someone on here can give you more of an in-depth answer than me but that's about the gist of it.

 

Siany

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