The sole director of a limited company is using a room in his house as an office and wants to claim a proportion of the L&H,council tax and mortgage interest from the company.Under what heading in the P&L is this figure shown?
Are there any BIK implications?
John
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Use of home as office
As far as accounting goes, this can be done as follows:
Debit P/L "Use of Home of Office" or "Admin costs" or similar
Credit balance sheet "Director's Loan A/c"
As the director is recovering costs incurred from the company, this does have to be reported on form P11D, but a s 198 claim can be made on the self assessment tax return.