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Registered Address Service Cost - Tax Deductible?

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I have got a registered office address and director's service address package from a formation agent. I will be paying for it at a yearly service cost. Is this cost tax deductible for my ltd company? The director's service address should be a director's expense, so it is obviously not a company expense but is a registered office address eligible for corporate tax deduction? If so, what type of expense will it fall in, rent of office premises? Highly appreciate a response, Thanks.

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By Paul Crowley
04th Sep 2021 15:59

Why worry?
Let the accountant sort it when he does the accounts.
I personally recommend against using an address that you do not control
If the company is going to trade then best get some advice at planning stage

Thanks (3)
Replying to Paul Crowley:
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By fayw
05th Sep 2021 02:04

The accountants I have looked for are charging a lot. So for the start I have thought of running it on my own. I have taken some advise back last month which covered all major tasks, just figuring out the smaller ones.

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Replying to fayw:
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By Tax Dragon
05th Sep 2021 06:02

fayw wrote:

The accountants I have looked for are charging a lot. So for the start I have thought of running it on my own. I have taken some advise back last month which covered all major tasks, just figuring out the smaller ones.

What, like how to do the accounts and tax?

Who could do that for you: an accountant.
What Aweb is not: an accountant.

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Replying to fayw:
Stepurhan
By stepurhan
05th Sep 2021 08:52

fayw wrote:

The accountants I have looked for are charging a lot.


What do you consider "a lot"?

You have opted to operate through a company. This immediately makes fees higher, because there is extra work needed to meet statutory requirements. Do you actually need to operate through a company, or have you already made an expensive mistake?

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Replying to fayw:
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By Paul Crowley
05th Sep 2021 13:08

Good advice already in prior 2 replies
Please be aware
You are now a member and able to post replies to others
You could therefore both give and recieve replies that may not be the best options.

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Replying to fayw:
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By Leywood
05th Sep 2021 17:34

Not the best tax planning.

You bemoan Accountants fees, think you can DIY but clearly don’t really have a clue so then try to get freebies from Accountants from a forum that is for Accountants. 10/10 for cheek.

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By zebaa
05th Sep 2021 09:40

To answer your question, yes, most likely, given the information you supplied. I suggest it’s a miscellaneous expense, but it depends on your companies accounts.

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By Paul Crowley
05th Sep 2021 13:21

Usually best to start self-employed unless you consider significant risk involved
Reason? If you make a loss you can set it against your other taxable income, and accountancy fees are so much cheaper

Assumed this is not a full time trade

Either way you can only get tax refunds against tax paid and losses in self-employment are treated very generously.

Real life issues are that how you describe a cost really does not matter
What matters is whether the cost is a valid company expense and whether it is allowable for tax. Followed by whether the cost is a taxable benefit on the director or other employees.
I assume one of the major tasks was deciding about remuneration policy, cars and vans

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Replying to Paul Crowley:
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By zebaa
05th Sep 2021 16:21

Paul, while I don’t doubt your advice may be tailored for a selection of your clients, I have seen instances where limited liability could have saved honest hard working men & women their life savings. I’m not just taking about small sums here. Sole trade or unlimited partnership can expose a person terribly.

In one case the businessman asked his accountant ‘ Should I go limited ? ‘ and came the answer ‘ Oh, it’s a lot of bother, you are not planning to go bust are you ?’. A year or so later a major company went down & took him with it. As a PLC the directors walked away. Not so the partnership.

The point of this post is that not everything is about ease or tax.

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Replying to zebaa:
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By Hugo Fair
05th Sep 2021 17:32

No but the point that I think Paul (and others) are making is that OP should talk through their personal objectives/constraints and risk wariness/willingness with someone qualified to give them useful professional advice - such as an accountant.
Ideally this would have been done prior to incorporation, but it's still not too late to do so ... and the cost will be minor (even if it doesn't feel like it) compared to the cost of making the 'wrong' decisions now and in the near future.

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Replying to Hugo Fair:
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By zebaa
05th Sep 2021 23:56

I have no problem with the suggestion he seeks an accountant & indeed would support that view. What made me respond was the suggestion that sole trader was the way to go, because of what I have seen in the past, as mentioned above.

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Replying to zebaa:
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By Paul Crowley
08th Sep 2021 14:40

If the trader wants to operate without accounting advice because accountants are too expensive then I would guess there is not much of a trade in existence.
Insurance covers the big risk of accidentally killing someone
But a tiny little trade that might not make any money inside a company means a lot of admin to get right for someone who is relying on social media for advice
One that makes a loss?

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