Home Office / Dividends

[Andy2]

I am with SJD and charge one third of (rent +utilities bills)
as home office expense. However I work from home rarely.

[Gonzo]

This is odd.. My accountants guide seems to be saying the same thing (2GBP / week)- but if you look in the SJD contractor guide is aligns with the PGC article and the SJD guide is written for ltd companies.

Which is correct?? Would love to expense a portion of my rent - seems fair as the company does operate from the flat.

I think that the 2GBP per week applies to employees working from home. The rules are different for a Limited company.

IANAA

[Sockpuppet]

Explain here: http://www.hmrc.gov.uk/manuals/bimmanual/bim47825.htm

You can do it either way.

[kingshuk]

Home Office / Dividends

Nice subject name. I thought its a single thread to discuss immigration and IR35

[philip@wellwoodhoyle]

From the business income manual - "This chapter explains what expenses are allowable when someone who is self-employed uses part of their home for business purposes. It does not apply to the use of home by an employee or director - for this see EIM32760 onwards. "

EIM 32760 basically says you're limited to £2 per week unless your "additional" costs of working from home are higher - http://www.hmrc.gov.uk/manuals/eimanual/EIM32815.htm

List of household costs that can't be claimed

The contents of the business income manual do not apply to employees (including directors), they apply only to the self employed (i.e. sole traders and partnerships).

[Robot]

I am with SJD and charge one third of (rent +utilities bills)
as home office expense. However I work from home rarely.

If you seldom work from home, how can you put through an expense for ‘use of home as office’? Surely, you should only claim this if you do substantial work (contract work) from home.

I presume the rental income you receive from the company is treated correctly on your personal tax return.

[Bluebird]

If you seldom work from home, how can you put through an expense for ‘use of home as office’? Surely, you should only claim this if you do substantial work (contract work) from home.

I presume the rental income you receive from the company is treated correctly on your personal tax return.

If it's a small amount I don't think you have to declare it as personal; income...

[Pickle2]

If you seldom work from home, how can you put through an expense for ‘use of home as office’? Surely, you should only claim this if you do substantial work (contract work) from home.

I presume the rental income you receive from the company is treated correctly on your personal tax return.

I think the point is that if x percent of the flat is occupied by the company's office, and thus cant be used for anything else, then he is effectivley sub-leeting that bit of the flat to the company.

As he is doing it at cost (ie their is no profit made, it costs him x to rent the space and he charges his company x in turn for it) there is nothing to report on his tax return.

[Andy2]

If you seldom work from home, how can you put through an expense for ‘use of home as office’? Surely, you should only claim this if you do substantial work (contract work) from home.

Even though I seldom work from home ,I need some place to keep company's files and computer , which is a part of my home used by my ltd company.
I was advised to divide (rent+utilities) by the number of rooms in flat , which can be claimed.
hth

[Pickle2]

Even though I seldom work from home ,I need some place to keep company's files and computer , which is a part of my home used by my ltd company.
I was advised to divide (rent+utilities) by the number of rooms in flat , which can be claimed.
hth

Advised by whom?

I think that is the point of the thread. Since last year this is no longer an allowable claim for a limited company director.

Or is it? Confused.