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Disclosure - Home/Office payment

Disclosure - Home/Office payment

Does anybody think that Home Office payments made to directors of companies for use of home should be disclosed as a related party transaction?

I'm thinking more if you push it into being property income for a 'licence fee' rather than a business expense under employment income.

What do you do if anything?

Neil Wilson


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08th Oct 2007 11:47

I agree with you, Neil
I would add a suggestion that the director makes an expense claim for the (incremental, these days) costs incurred and that they go through the company's usual authorisation process - as opposed to an accountant's year-end adjustment.

A licence agreement would imply a degree of profit (or an intention to make one) in the transaction and so in my experience a related party transaction.

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