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AccountingWeb any answers - use of home

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    #11
    "Mr and Mrs WIB shall provide to WIB Ltd, for compensation received, access to portions of their home to use as office space. Access shall be on the following terms:
    A. Study. Up to 80 hours a week.
    B. Family Room. Up to 50 hours a week.

    The above shall not preclude the use of those rooms by Mr or Mrs WIB for personal use at other times, nor shall it preclude personal use by one of them concurrently with business use by someone else."

    Obviously my case is different from most because some people work evenings and weekends so the study is often hopping, and when everyone is here and brainstorming a project we all move into the family room, sometimes for more than a day. Most of you guys won't be doing that kind of thing.

    But specifying a max number of hours and having language specifically endorsing personal use should protect against the capital gains concern, I'd think.

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      #12
      My accountant takes the £4 a week I journal through the company and bumps it up a bit. When I asked him why, he said:

      "Although the official HMRC manuals state that use of home can be £4 PW in reality they never question a charge of £500-600"

      That's an annual charge, not £500-600 PW

      Comment


        #13
        Originally posted by ladymuck View Post
        My accountant takes the £4 a week I journal through the company and bumps it up a bit. When I asked him why, he said:

        "Although the official HMRC manuals state that use of home can be £4 PW in reality they never question a charge of £500-600"

        That's an annual charge, not £500-600 PW
        That is a great way to decide on your accounts figures...not!

        While we are at it, why not increase accountancy fees in the accounts, or insurance costs, as HMRC never question these costs for my clients either!

        Seriously, that is some pretty bad advice you have been given there. How would you justify the increase to HMRC if they asked? Would you just quote the above line from your accountant?

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          #14
          I do £4 per week each for me and the Mrs (both directors and shareholders), £416 per annum total.

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            #15
            Originally posted by SuperLooper View Post
            I do £4 per week each for me and the Mrs (both directors and shareholders), £416 per annum total.
            Using the missus to up the rent. That's a new one.
            I hope BT isn't claiming 4 quid a week for all their shareholders.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

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              #16
              I was surprised by it too, but my accountant (who is very well respected on this forum) assured me it was perfectly normal and acceptable.

              It is factually correct to state that each of my company's directors is giving up a room in his/her house to the company. It just happens to be the same room in the same house for both people.

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                #17
                Originally posted by northernladuk View Post
                Using the missus to up the rent. That's a new one.
                My accountant also advises my wife (who is a director and does some admin work) claims the £4/week.

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                  #18
                  Originally posted by SuperLooper View Post
                  I was surprised by it too, but my accountant (who is very well respected on this forum) assured me it was perfectly normal and acceptable.

                  It is factually correct to state that each of my company's directors is giving up a room in his/her house to the company. It just happens to be the same room in the same house for both people.
                  Yeah I get that. Just odd I don't think it's ever been mentioned on here when discussing the benefits of using the wife to mitigate tax. One to add to the list
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #19
                    Originally posted by northernladuk View Post
                    I don't think it's ever been mentioned on here when discussing the benefits of using the wife to mitigate tax.
                    Like my Mrs being exempt from tax you mean?

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                      #20
                      Originally posted by PhiltheGreek View Post
                      Like my Mrs being exempt from tax you mean?
                      Well it's all her money anyway isn't it?
                      'CUK forum personality of 2011 - Winner - Yes really!!!!

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