Tax implications on building an 'office'

Tax implications on building an 'office'

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My company is a Ltd company web based business. I need somewhere quiet to work so I'm thinking of building a shed/summer house on my property and charging my Ltd company £10600 per year rent. My wife doesn't work so I'm going to use her personal allowance and draw up a rental agreement between her and the company. She'll have to complete a self assessment return which is fine. Have I missed something or will there be any tax implications on this? Instead of paying myself a salary from the company, would it be possible to half a joint rental agreement and charge the company £21200 to use the shed?

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By duncanedwards
27th Mar 2015 17:32

Fraught with issues tax, planning, health and safety(?).

I'd pay for some advice to get all the issues properly bottomed.

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paddle steamer
By DJKL
27th Mar 2015 17:39

The post above really says it all, fraught...

The post above really says it all, fraught with difficulties, however one point to bear in mind  from the outset re tax is that the rent cannot (for tax purposes) merely be a plucked from the air, £10.600 or £21,200 at your whim, to fit your tax planning- it requires to be at a market rate.

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