AccountingWeb any answers - use of home

[ladymuck]

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?

I have to say, every year when I saw he'd journalled that through, I would just reverse it as I thought it was an error. Shame I'm not personally VAT registered as an extra £100 off my VAT bill isn't be sniffed at

[PhiltheGreek]

Wow. So one of the little WIBs still lives at home and works for me. Does that mean we can pull off £12 / week, since he's giving up part of HIS home, too? I'll slash the little tyke's salary by £4 / week and pay him rent!

Or does it have to be a spouse? Polygamy, here I come! Do Mormons accept you into their religion if you are only doing it to save tax?

I once saw a sign that said 'Jesus saves'. Maybe the word 'tax' had fallen off the end? In which case fill yer boots. I'll look forwards to the polygamist divorce thread.

[TheCyclingProgrammer]

Wow. So one of the little WIBs still lives at home and works for me. Does that mean we can pull off £12 / week, since he's giving up part of HIS home, too? I'll slash the little tyke's salary by £4 / week and pay him rent!

Or does it have to be a spouse? Polygamy, here I come! Do Mormons accept you into their religion if you are only doing it to save tax?

If they work for you and they work from home, you can pay them £4/week.

[WordIsBond]

Wow. So one of the little WIBs still lives at home and works for me. Does that mean we can pull off £12 / week, since he's giving up part of HIS home, too? I'll slash the little tyke's salary by £4 / week and pay him rent!

Or does it have to be a spouse? Polygamy, here I come! Do Mormons accept you into their religion if you are only doing it to save tax?

[northernladuk]

Like my Mrs being exempt from tax you mean?

Well it's all her money anyway isn't it?

[PhiltheGreek]

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?

[northernladuk]

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

[TheCyclingProgrammer]

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.

[SuperLooper]

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.

[northernladuk]

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.