Reply to: Repairs to home office through Ltd Co not allowed

[Old Greg]

Maybe they're from Yorkshire?

They would just sit in the rain to show they were tough.

[ladymuck]

Or, the OP could stop pissing about for a few quid and repair their house without the additional hassles.

Christ, the lengths that people will go to to save a bob or two.

Maybe they're from Yorkshire?

[wattaj]

You are correct. Your accountant and other posters here are incorrect. Your company can pay for the repairs.

Just make sure that you treat it as a BIK and pay all the taxes due as such.

Or, the OP could stop pissing about for a few quid and repair their house without the additional hassles.

Christ, the lengths that people will go to to save a bob or two.

[Scruff]

There will be Capital Gains implications if you claim your home office expenses as a percentage or as a fraction of your home running costs too.

Your repairs will also not fall within the "wholly and exclusively" rule, since amongst other things, the roof is the roof of the house and can't be subdivided into just the roof of your office.

KISS.

[Old Greg]

Hi, as everyone else I work from home where I have a substantial home office setup over the past 10 years or so.

The office is setup for me to develop and work on client solutions (sometimes on an outside IR35 and sometimes on an inside IR35 basis). The office is upstairs. Unfortunately, we recently had bad weather and rain water came into the office damaging the floor, walls cracked, ceiling cracked, skirting boards all warped, walls discoloured, paint peeling etc fortunately nowhere near the power sockets. A local roofing company identified the problem in the roof above the office and sent a quote for repair.

I just thought this the Ltd company could pay for the repairs as it only affects the office but my accountant is now saying I have to cover the full costs of the repair personally. Has anyone else been in a similar situation? Is that right? Any advice would be appreciated. Thank you.

You are correct. Your accountant and other posters here are incorrect. Your company can pay for the repairs.

Just make sure that you treat it as a BIK and pay all the taxes due as such.

[northernladuk]

True in general terms, but it really depends of the "rental agreement" *winks* that is in place at the time.

True but what idiot signs a lease that makes them liable for repairs to the fabric of the building... *Reads first post again*... ah.. I see what you mean.

[wattaj]

But it wouldn't. The landlord would still be liable for structural repairs and damage such as this.

True in general terms, but it really depends of the "rental agreement" *winks* that is in place at the time.

[eek]

But it wouldn't. The landlord would still be liable for structural repairs and damage such as this.

Ever seem a commercial lease? - the landlord is very rarely responsible for anything.

[northernladuk]

Your accountant was correct about the car lease as well. And about the 24 month rule.

Yeah. FOPSCONT

[northernladuk]

Your accountant is correct.

The home belongs to you; not the company.

It would be different if the company had sole use of this space and paid rent on that space, but you do not say if this is the case. Even if it was, and you did, there would be other tax complexities that would cause problems.

Nice try.

But it wouldn't. The landlord would still be liable for structural repairs and damage such as this.

[WTFH]

Your accountant was correct about the car lease as well. And about the 24 month rule.

[Paralytic]

Why do perfectly intelligent, reasonable people lose their tulip when there is the chance to save a few quid? Common sense just seems to go out of the window. They get fixated on the outcome they want regardless of how stupid it is and then come on here to ask about it without a single modicum of thought after being told by professionals that its not possible but hoping some random person on the internet will tell them otherwise.

FTFY

[northernladuk]

Why do perfectly intelligent, reasonable people lose their tulip when there is the chance to save a few quid? Common sense just seems to go out of the window. They get fixated on the outcome they want regardless of how stupid it is and then come on here to ask about it without a single modicum of thought.

[wattaj]

Your accountant is correct.

The home belongs to you; not the company.

It would be different if the company had sole use of this space and paid rent on that space, but you do not say if this is the case. Even if it was, and you did, there would be other tax complexities that would cause problems.

Nice try.

[eek]

It's in your own home - so you would personally derive a benefit from the repairs.

Hence it's not claimable without a whole world of pain and consequences you really don't want to go near.