So a current client needs an office. He works long hours as a self employed contractor. He is a remote worker and works primarily in his home office.
Because of personal issues and his house now becoming what is unfortunately close to a care facility for other family members, he needs to get an office.
Because of the care needs of the family, he needs to stay close to home. However the closest offices are a 20 minute drive and quite expensive.
As he works odd hours and sometime very late or very early, he's come up with the idea of renting a house that is close to the family home that a friend of his is putting on the market for rent. The cost of the house is cheaper than getting an office, has more space, and amenities like a kitchen so he can cook his own meals if he is there for a long time.
He can also use the extra space to store files and other furniture for the business and clear some space for the extra equipment needed for the family members' care. He can also sleep there if he really needs and provide a space for his child who is going into their A-levels to work without the distraction of the family home.
In principle I think this is a great idea. It suits his needs better, is cheaper and will help the family out considerably. It will also allow him to earn more money as he is paid by project completion and the removal of distractions at home will allow him more capacity to take on more projects.
What I essentially need help with is, whether or not and how, I can justify this as "Office Rent" and an allowable cost to the business.
He pays the mortgage of the family home already as well as all the bills and would then also be paying the rent plus bills of the house which will serve as an office. The mortgage and all cost relating to the family home is paid out of personal money.
My thinking is that aslong any tax investigator knocking on the door can go in a see that it is primarily an office, it should be ok. But this is a new situation and no-one I have asked seems to know how to go about it.
Any help appreciated. Thanks