Expenses claimed via Ltd company

Expenses of home annex on Ltd company

Didn't find your answer?

1)We are doing a annex in the garden of our home. We are planning to use the space as a studio/home office for our ltd company. 
Some of the  building material for the annex  was paid out fron the ltd company bank account. I assume these material  expenses can't be claimed against the ltd profit,  correct? If it is the case my  plan is to return the funds  (as director)  to the ltd as soon as available in my personal account . Please let me know if.my assumption/understanding is correct

Replies (6)

Please login or register to join the discussion.

By David Ex
12th Feb 2024 13:40

Sam Jones wrote:

1)Please let me know if.my assumption/understanding is correct

If you’re not an accountant, your “understanding” is unlikely to be based on the correct tax and company law and accounting rules.

Do yourself a favour and appoint an accountant. You should get good value for the fees.

Thanks (3)
By Dougscott
12th Feb 2024 14:54

The company could pay for the extension in total but it would not be a tax deductable expense anyway and then you are likely to get yourself in a lot of bother with other issues like capital gains tax, business rates, etc. Without knowing the full facts of the situation I would treat it as an annex to your personal home so it benefits from your PPR relief. The company could pay for any fixtures and fittings in the extension such as shelving, office furniture etc and claim capital allowances on those.

Thanks (1)
By WinterDragon
12th Feb 2024 15:07

The Wizarding Orb of Truth wrote:

If you intend to plan a course of action based on what you read in here, you should instead be taking professional advice

I have pondered on my crystal ball and it has returned the above.

Thanks (1)
Replying to WinterDragon:
By FactChecker
12th Feb 2024 19:23

Your crystal ball is quick to make assumptions - such as OP being a rational person who wants to 'do' everything correctly whilst minimising unnecessary tax.

But they could be one of the last adherents of the Dice Man philosophy ... so rolls the dice before each decision - and sometimes saves money (and gets away with it), whereas other times gets caught and/or pays multiple times more than necessary. But it doesn't matter because it wasn't really your decision, the dice made you do it!

Thanks (2)
By Tax Dragon
12th Feb 2024 22:23

Beware the exclusion in s316(5)(b) ITEPA 2003.

Thanks (1)