Apologies if this has been asked before.
My client director shareholder of a Ltd company has a non exclusive licence agreement for use of home office - the house is jointly owned by her spouse. Can they charge the company up to £2,000 per annum without any extra tax and reporting requirement?
Let's say the expenses (apportionned) are roughly covered by this amount, at best it would save time in doing the actual computations.
If the expenses are less but the amount is deemed reasonable (commercial rate) it wouldnt affect deductibility for CT and still no extra tax is incurred for the director and her spouse.
Is this correct?
Edit: forgot to mention it would apply from 2017-18