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Working full time in a business property

Work/living Residential Company Property

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

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By Abacus
14th Dec 2017 22:15

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.

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By AtA
to Abacus
14th Dec 2017 23:07

Dear Abacus
Thanks for your response. There are actually two properties on the same building with separate entrance and both register on the Land Registry as unit 14 unit 18 leasehold property, one is commercial and the other one residential, they are in the building. The commercial is used for customers and the residential I use it for office space shared with two admin employees. I take care of any maintenance if needed on both properties. Does this change anything? Thanks for your time

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By Abacus
to AtA
14th Dec 2017 23:12

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.

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By AtA
to Abacus
14th Dec 2017 23:28

I know what you mean. It is a big place and I have always work from home, having the girls working with me in the same space makes the job more fun and interesting. A new Director has been appointed and just wanted to make sure, as I don't want to create any troubles. It is a small company. Thanks for your reply and help,
A

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