Use of home / rental / business purchase - best choice when building extension?

[The Tall Designer]

Loads of businesses do it?

Really, I'm not aware of anyone who has implemented such a half brained scheme

Well I'm not aware of all sorts of things, doesn't mean they don't happen - why I'm here in fact, getting more knowledge. But - huge thanks for your informative comments, keep em coming.

[The Tall Designer]

Just wondering, if you inherited the house, why do you have a mortgage on it?

Also, if the mortgage says "no business use", then if you run your business from there, your home insurance is invalid (and probably any insurance you have on your business equipment)

'cos it was knackered and barely standing up. Now it's 35% bigger and really nice to use.

[The Tall Designer]

Is it just me or does this smack of Gricer?

Had to google it, doesn't really seem to fit - dunno - you reckon I'm out in a posh pad in the country I inherited from my father the lord or summing? It's a tiny terrace that only avoided slum clearance by 100 meters but it is mine


Aaaaanyway - all I'm trying to do is pay the least amount of tax I legally can do without getting in the crap from the rev. Especially as I worked there two years. I will have a dedicated office in about 4 weeks and if a rental agreement is the best way, happy days I'll do that innit.

This - https://caseron.co.uk/renting-home-o...space-company/ - is the sort of thing in case anyone is wondering.

[northernladuk]

Aaaaanyway - all I'm trying to do is pay the least amount of tax I legally can do without getting in the crap from the rev. Especially as I worked there two years. I will have a dedicated office in about 4 weeks and if a rental agreement is the best way, happy days I'll do that innit.

This - https://caseron.co.uk/renting-home-o...space-company/ - is the sort of thing in case anyone is wondering.

You need to wait for your accountant. If they are any good they'll push you down the use of home office route like nearly everyone does. That is the best way.

If the house is that small don't kid yourself it's dedicated. It will be used by you for non business as well so not dedicated. Have you actually done any fag packet calcs for this or have you just decided you like the idea for no other reason than it sounds good?

We get a ton of these threads where people get giddy with these ideas where the real answer is completely different and has been used by 10s of thousands of work from home people. You aren't inventing anything new here and just because you like the sound of it it doesn't mean it's the best option.

[The Tall Designer]

You need to wait for your accountant. If they are any good they'll push you down the use of home office route like nearly everyone does. That is the best way.

If the house is that small don't kid yourself it's dedicated. It will be used by you for non business as well so not dedicated. Have you actually done any fag packet calcs for this or have you just decided you like the idea for no other reason than it sounds good?

We get a ton of these threads where people get giddy with these ideas where the real answer is completely different and has been used by 10s of thousands of work from home people. You aren't inventing anything new here and just because you like the sound of it it doesn't mean it's the best option.

Er - thats why I'm asking here? Sadly the search function is crap so looking for the phrase "use of home" was a non starter and I couldn't find any other threads.

If it's the "Best Way" cool - but I am trying to find out why, its definitely not the "best way" for everyone, so what are the reasons it is / not?

As for the dedicated thing, it only needs to be during office hours which is funnily enough when I am in it working and only occasionally wanking.

I don't at all think I am big or clever or coming up with something new - it's just in my experience of 14 years running my own Ltd and having 4 accountants now - that other contractors - hello! - have a better idea of what can and cannot be done. My accountant didn't even remind me about trivial benefits.

Fag packet calcs, well a rental agreement seems to be far more money coming out than use of home, given a dedicated serviced office nearby, a room all of my own not open plan, is about a grand a month. That seems like money left on the table - if I fit the criteria. SO I am here, trying to fin out as the Rev are tulip at giving specifics as we all know.

If you don't know / can't help / don't want to help - cool beans man I'm just asking, please go about your business, move along, these are not the droids you're looking for.

[Paralytic]

'cos it was knackered and barely standing up. Now it's 35% bigger and really nice to use.

I hope that 35% bigger extension was put through the business.

[Paralytic]

This - https://caseron.co.uk/renting-home-o...space-company/ - is the sort of thing in case anyone is wondering.

Which part of that talks about putting £40K of build costs through the business?

[minestrone]

Business would either need to be on the deeds of have a charge on the property.

Your first charge lender would tell you to feck off. Probably.

[The Tall Designer]

Which part of that talks about putting £40K of build costs through the business?

Er, it doesn't of course - thats the second of the two options I was looking at, as more tax efficient than 'use of home office"

[The Tall Designer]

Business would either need to be on the deeds of have a charge on the property.

Your first charge lender would tell you to feck off. Probably.

Maybe, but I own the house and the business with nobody else (no partners, marriage etc) so if thats a thing, I could do it. I mean I expected the rental agreement thing to be the easiest way of doing it, given the issues with capital gains and all sorts of other crap. I'm just trying to find out for sure what the full options are and expressly not just doing what the majority do 'cos they are so often... wrong.