Buying portion of my main residence as office space

[Lance]

Nope.

I struggle to believe a qualified accountant has recommended this. There would be so many negative knock on consequences. Sounds more like the idea of an "expert" you meet in the pub.

Nominations for best response of the year are now open.

[northernladuk]

An Accountant I know suggested that I assign a portion of the house to the business say 10% as I work from home.

An accountant I know kept his clients CT payments and blew it on hookers. Not all accountants do it right.

That said I've heard stories like this before. A contractor friend from many years ago had an accountant that told him to lease a Cayman S and put the lease payments through the company as an expense. He then advised he bought the car at the end of term and sell him to himself at a considerable loss. He didn't get caught so now the accountant things he's the bee's knees.
I do think there are some guys out there that will push the envelope because they know how few people go through investigations. If you ask them, will this work and will I get caught they'll say of course not. If you ask what happens if I do they go all quiet and say you won't. There are fly by nighters in any industry I guess.

[Old Greg]

Have you considered selling a portion of the house to a Dutch Antilles trading vehicle? It will take out an option to purchase after 1 year, priced in a range of high fluctuation currencies, and you individually select the most advantageous currency at the end of the year. Then the vehicle lets it to YourCo and the VAT is recycled back to you via a US sovereign Indian Reservation film production trust.

All perfectly above board.

[Jimsum]

This sounds like a complete and utter mess.

If you're planning to retire soon, I would simply look into shutting down and getting all of your retained profit out in the most tax efficient way possible (MVL if the profits are high enough) then use the money to pay off your mortgage.

Thank you all for your replies including the humourous ones

Doesn’t sound like the Accountant’s advice seems legit so good to run it past on this forum.

Cyclic Programmer, the most obvious solution would be to close the company. However, I’m thinking of semi-retiring and work 3-6 months a year so I can’t close off the company and withdraw a large sum easily.

Any suggestions, anyone?

[Maslins]

I’m thinking of semi-retiring and work 3-6 months a year so I can’t close off the company and withdraw a large sum easily.

Any suggestions, anyone?

Then just keep making your mortgage repayments from the salary/dividends you take from your company going forward. The simplest solution is often the best.