garden office through ltd, however now considering closing ltd

[Lance]

Thanks for the advice... it was the account that suggested this arrangement in the first place, oh well. We'll sort it out somehow - thanks!

accountant != conveyancing solicitor

[matei]

Thanks for the advice... it was the account that suggested this arrangement in the first place, oh well. We'll sort it out somehow - thanks!

[SueEllen]

Owning the office building will also cause you far less hassle if you ever sell your house.

Nice to know someone is on the same page as me.

[northernladuk]

I belongs to the company, not you. Don't you simply buy it back minus whatever depreciation ? Ask your accountant.

If it was his accountant thst suggested doing this in the first place maybe that's not the best advice for a change

[northernladyuk]

Let HMRC sort it out. http://www.gov.uk/government/organis.../bona-vacantia

[eek]

If OP takes eek's advice and changes their accounting treatment of the purchase (so its as if they simply borrowed the money from TheirCo to buy it) then they would also need to re-pay any input VAT they may have reclaimed as it would no longer be eligible for a VAT reclaim.

Yes I know its not pretty but the reality is that I suspect the OP hasn't got an accountant and has created a mess that needs to be fixed regardless of the current desire to close the company down....

[TheCyclingProgrammer]

Certainly the safest thing to do, but hasn't the VAT just 'disappeared'? I guess the OP is wondering if there's a more advantageous way of doing this.

If OP takes eek's advice and changes their accounting treatment of the purchase (so its as if they simply borrowed the money from TheirCo to buy it) then they would also need to re-pay any input VAT they may have reclaimed as it would no longer be eligible for a VAT reclaim.

[TheCyclingProgrammer]

Take this from somebody who has gone back and forth with his accountant and spend a long time researching this...buying a garden office, or paying for any kind of building works on land that you own, risks you being liable for a benefit in kind charge without some very creative accounting (which in itself would create other problems).

My accountant's opinion was that if you work mostly from home, you could possibly justify it and argue there is no significant personal usage but it depends how risk averse you are. I'm not very risk averse so in the end decided to fund mine personally (the base was installed today, the building goes up next week - ).

Obviously you've done it now and I guess its arguable that the risk of investigation is low. IMO the sensible thing to do would be to buy the building off YourCo, close down the company and forget about it. You need to pay a reasonable commercial value for the building - what the building is worth is a bit of an open ended question really. Is it a "posh shed" or a properly constructed insulated building? How did you capitalise the office in your accounts - how much has it depreciated by?

Whatever you pay for it, if it exceeds the book value of the asset in your accounts, YourCo may need to pay corporation tax on any profit (capital allowances can get a bit tricky - I know you can't claim capital allowances on the original cost of the building so I'm not sure if there's a balancing charge in this case - talk to your accountant). You will also need to account for VAT on the sale.

Owning the office building will also cause you far less hassle if you ever sell your house.

TLDR; speak to your accountant about how to value the building, buy it and handle the sale in your accounts and any tax issues, close the company down, forget about it.

[northernladyuk]

That was a foolish thing to do see http://forums.contractoruk.com/accou...it-office.html

My advice would be to call it a personal loan and repay the company then close the company down...

Certainly the safest thing to do, but hasn't the VAT just 'disappeared'? I guess the OP is wondering if there's a more advantageous way of doing this.

[kaiser78]

Was it on Shed Of The Year over the weekend ?

[eek]

Hi all,

Bit of an odd question. Recently put in a garden office, paid for it via ltd - as I'd been working 90% from home on contracts over the past few years, makes working much easier.

However out of the blue I've been offered the dream perm role - salary that is on a par with my best day rate, benefits etc.

Most likely going to take it - wasn't sure what accounting implications there would be re. the recently installed office etc if I were to close the ltd, as it doesn't make much sense to keep it running.

ON the other hand I could keep it open - but I'm not actually trading at the moment. Wasn't sure if that would be preferable?

That was a foolish thing to do see http://forums.contractoruk.com/accou...it-office.html

My advice would be to call it a personal loan and repay the company then close the company down...

[northernladyuk]

I belongs to the company, not you. Don't you simply buy it back minus whatever depreciation ? Ask your accountant.

What's the going rate for a second hand shed? Put it on ebay to establish the market rate and pay YourCo that sum. Or ask your accountant as radish suggests.

[radish2008]

Hi all,

Bit of an odd question. Recently put in a garden office, paid for it via ltd - as I'd been working 90% from home on contracts over the past few years, makes working much easier.

However out of the blue I've been offered the dream perm role - salary that is on a par with my best day rate, benefits etc.

Most likely going to take it - wasn't sure what accounting implications there would be re. the recently installed office etc if I were to close the ltd, as it doesn't make much sense to keep it running.

ON the other hand I could keep it open - but I'm not actually trading at the moment. Wasn't sure if that would be preferable?

I belongs to the company, not you. Don't you simply buy it back minus whatever depreciation ? Ask your accountant.

[matei]

Hi all,

Bit of an odd question. Recently put in a garden office, paid for it via ltd - as I'd been working 90% from home on contracts over the past few years, makes working much easier.

However out of the blue I've been offered the dream perm role - salary that is on a par with my best day rate, benefits etc.

Most likely going to take it - wasn't sure what accounting implications there would be re. the recently installed office etc if I were to close the ltd, as it doesn't make much sense to keep it running.

ON the other hand I could keep it open - but I'm not actually trading at the moment. Wasn't sure if that would be preferable?