Reply to: Office rent expenses

[Old Greg]

Simplification is the reason. However now that you know what is included, does this justify the price?
I don't think the price matters though.

I say you do it, and it will be fine. HMRC won't be suspicious and if they are, you have a watertight case. Best of luck with your ongoing business ventures.

[ASB]

Simplification is the reason. However now that you know what is included, does this justify the price?
I don't think the price matters though.

In principle it is fine. Caveat is that the money doesn't partially find its way back to you. Plenty have said that of course.

but price does matter on 2 levels.

firstly your fiduciary duty as a director. If the service could be obtained elsewhere cheaper you need a decent answer why not. Realistically this isnt an issue. It would need shareholders tocomplain. Hardly likely.

secondly the taxman can challenge the level of expenditure if it appears excessive. So you need to have answers potentially.

but it could easily be reasonable. If the work needs somebody moderate skilled then perhap 25 an hour would be a fair retail price. So 12 hours a month. Easy to see that could be used.

sure, it sounds a bit odd. But that doesn't mean it is.

[TheFaQQer]

Simplification is the reason. However now that you know what is included, does this justify the price?
I don't think the price matters though.

If you don't think the price matters, why are you bothered with what people on here think?

You've asked you accountant and they said it was OK, so just do it. I'm not sure what purpose this thread serves :/

[sociopath]

Simplification is the reason. However now that you know what is included, does this justify the price?
I don't think the price matters though.

When you say simplification do you mean it is convenient for you? How is it beneficial to the company?

The price does matter as you have a duty as a director to look after the best interest of the company.

If the company can procure the same degree and quality of services at substantially less cost then why not choose them?

[GillsMan]

OP throwing his toys out of the pram - yet again - because they don't like the responses

If the OP wants to spend that kind of money per month on the service he described then either:

1. He is an idiot, happy to squander his company's money
2. He has massively under-described the amount of work that will be taking place
3. He and the landlord have some sort of arrangement where the OP gets a cash-in-hand kickback

My vote is on #3.

[pr1]

Simplification is the reason. However now that you know what is included, does this justify the price?
I don't think the price matters though.

Even if it is completely above board and innocent it may raise suspicion and possibly trigger an in depth investigation - your original question was "will it raise any red flags" - paying far over the perceived market price for something can raise red flags

[WTFH]

Thanks for the response, garnet. :


People can't give accurate help to you without the facts, that's why they ask you questions. When you answer those then you will get more accurate answers. Otherwise it looks like you are lying/trying to do something shady/illegal and are looking for consent to it.

[garnet]

You were talking about letters...



Maybe you only get 1% of useful replies because you don't explain anything properly.

Simplification is the reason. However now that you know what is included, does this justify the price?
I don't think the price matters though.

[VillageContractor]

Pretty sure someone posted a link to a company that does that for approx ~£120 a yr.

Any more would be wasting company money, so the logical conclusion would be the only reason you would want to do this is because you're trying it on.

If you don't like people's comments don't post on the forum.

[northernladuk]

The service includes:

use of address as office address
mail collection
mail scanning and archiving to co's electronic archive
mail forwarding to UK and overseas by courier

Also we are not talking about letters only here. We are talking A2 to A0 sized documents.

You were talking about letters...

But for the luxury to use it as business address and receive letters there they want to charge me £350. They will also process the letters.

Maybe you only get 1% of useful replies because you don't explain anything properly.

[garnet]

To keep things simple, if you were to pay costs for a virtual office or postal service for your company, this would be wholly and necessary. So therefore allowable.

If the cost of the £350 is only for this service, in my opinion, you could claim this

The service includes:

use of address as office address
mail collection
mail scanning and archiving to co's electronic archive
mail forwarding to UK and overseas by courier

Also we are not talking about letters only here. We are talking A2 to A0 sized documents.

[MrMarkyMark]

Thanks for the input. Question was: is it legit to pay £XXX for office/registered business address/mail processing and get an invoice for that?
Not is it a fair price etc.

If admin decides so, they can lock the topic.

Ones again in this forum only <1% of the posts were help (i.e. based on law/fact/regulation).

Remaining >99% just pointless fart - the price is too high, etc.
Another stupid fart - do you claim your IPSE membership? And if yes, why - this is not wholly related to your business - you can be code monkey even without being IPSE member.

Thought the original post was the biggest "fart", tbh, given you had already been advised by a paid professional.

[northernladuk]

Thanks for the input. Question was: is it legit to pay £XXX for office/registered business address/mail processing and get an invoice for that?
Not is it a fair price etc.

We aren't here to do your bidding. We can comment as we see fit, particularly when some idiot is trying thinly veiled scams on.

If admin decides so, they can lock the topic.

You've been told about this before. Admin or the mods don't lock threads just because you don't like what is posted.

Ones again in this forum only <1% of the posts were help (i.e. based on law/fact/regulation)

Remaining >99% just pointless fart - the price is too high, etc.

Hopefully you'll get the hint and **** off fairly soon then.

Another stupid fart - do you claim your IPSE membership? And if yes, why - this is not wholly related to your business - you can be code monkey even without being IPSE member.

It took me about 10 seconds to read this one up. Maybe if you put a modicum of effort in to your rather lazy posts people might be more inclined to respond in kind and you'd get more than 1% response.

You can claim IPSE through the company but you can't claim tax on it as it's not a recognized body.

http://www.itcontracting.com/profess...ions-expenses/

List of bodies is here

https://www.gov.uk/government/public...ed-societies#i

[pr1]

Thanks for the input. Question was: is it legit to pay £XXX for office/registered business address/mail processing and get an invoice for that?
Not is it a fair price etc.

What makes you think the answer to that question could be no?

[garnet]

Thanks for the input. Question was: is it legit to pay £XXX for office/registered business address/mail processing and get an invoice for that?
Not is it a fair price etc.

If admin decides so, they can lock the topic.

Ones again in this forum only <1% of the posts were help (i.e. based on law/fact/regulation).

Remaining >99% just pointless fart - the price is too high, etc.
Another stupid fart - do you claim your IPSE membership? And if yes, why - this is not wholly related to your business - you can be code monkey even without being IPSE member.