Hi
I work (full time over 40 hours a week) and live in a property owned by my company. The property has residential use. I am one of the Directors of the company and 50% shareholder. Do I need to pay any rent? Am I able to claim part of the rates, such as electricity?
Thanks
A
Replies (4)
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Unless you are the caretaker and the building is a block of multiple properties you are effectively taking a benefit in kind (BIK). The market value for the rent and all bills will need to go on your P11D, i.e. tax and NI implications. In addition the deductibility of mortgage interest will be at risk and perhaps CGT implications upon sale..... not recommended.
You would need to fairly apportion the residential unit costs between 'private use as a home'(BIK) and 'business use' to put through your books.
I'm still a bit confused how you manage to live there and use it for work.