Originally posted by matei
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "garden office through ltd, however now considering closing ltd"
Collapse
-
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!
Leave a comment:
-
Originally posted by radish2008 View PostI belongs to the company, not you. Don't you simply buy it back minus whatever depreciation ? Ask your accountant.
Leave a comment:
-
-
Originally posted by TheCyclingProgrammer View PostIf 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.
Leave a comment:
-
Originally posted by northernladyuk View PostCertainly 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.
Leave a comment:
-
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.Last edited by TheCyclingProgrammer; 18 September 2017, 16:18.
Leave a comment:
-
Originally posted by eek View PostThat 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...
Leave a comment:
-
Originally posted by matei View PostHi 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?
My advice would be to call it a personal loan and repay the company then close the company down...
Leave a comment:
-
Originally posted by radish2008 View PostI belongs to the company, not you. Don't you simply buy it back minus whatever depreciation ? Ask your accountant.
Leave a comment:
-
Originally posted by matei View PostHi 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?
Leave a comment:
-
garden office through ltd, however now considering closing ltd
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?Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: