Reply to: Can my Ltd co. pay for conservatory in my house.

[original PM]

When you have a co car, do you know what a royal pita it is to work out your mileage claims?

nope!

I though it was a percentage of the total miles driven and then you need to take into account enigne size, fuel type and CO2 emmisions?

Assuming I have a free accountant to do this for me (which i do!) is it more beneficial to me in terms of tax savings?

[Archangel]

I built my own (hexagonal, timber framed, dwarf wall with glass roof) conservatory 2 years ago including:

1) Doing the drawings and obtaining planning permission (permitted development rights had been removed from the property)

2) Digging the strip foundations with a mini digger (great fun)

3) Supervising the concreting (barrow mix)

4) Building the inner blockwork and some of the outer stonework (a mason did the angles)

5) Constructing the conservatory from a timber framed kit (very complicated)

6) Glazing (32 panes!)

7) Fitting the doors

8) floor joists, insulation, flooring (oak)

9) plastering, heating, lighting, electrics, windowboards, skirting, painting

10) Enjoying a glass of wine with the Mrs


Original quotes ranged from 20-30k

Total cost 8k

Go on, do it.

[TheFaQQer]

only a problem if the house is going to be sold.

Which it eventually will be.

Plus, there is the other side of the coin - if the company is closed then you need to value the property and buy it (I think).

[Mart001]

But doesn'y your company then own a proprtion of the house? So at sale time you have to pay CGT?

only a problem if the house is going to be sold.

[tim123]

But doesn'y your company then own a proprtion of the house? So at sale time you have to pay CGT?

Yep,

But not only that, you will have to pay back into the company the value of that proportion of the house represented by the conservatory.

The idea that the company can pay for this item and that it then magically becomes the property of the individual is naive.

tim

[ratewhore]

ok in a similar vain

My co needs a car

I have a car

I sell my co my car

I then use the car (benefit in kind) 95%+ of the use will be buiness miles

I am going to be better off in the long run or is it better to keep the car and claim 40p per mile?

or am I talking rubbish

When you have a co car, do you know what a royal pita it is to work out your mileage claims?

[original PM]

ok in a similar vain

My co needs a car

I have a car

I sell my co my car

I then use the car (benefit in kind) 95%+ of the use will be buiness miles

I am going to be better off in the long run or is it better to keep the car and claim 40p per mile?

or am I talking rubbish

[MPwannadecentincome]

not because i want to save tax on div, but because i dont want to pay builders for the job if ordinary people like me can attempt the build themselves.

haven't u heared of credit crunch?


css_jay99

Surely better to spend the time on a second contract - charge by the hour you can put the extra towards the conservatory? That way you work on what you are good at rather struggling with the conservatory build, getting frustrated with it and then not finishing it.

[css_jay99]

So you are not going to build yourself a conservatory because you don't want to pay the tax on any divvies in the HR tax band?

That is sad...

not because i want to save tax on div, but because i dont want to pay builders for the job if ordinary people like me can attempt the build themselves.

haven't u heared of credit crunch?


css_jay99

[ratewhore]

Not as sad as considering building it yourself when you clearly have no building knowledge or experience. Are you Wilmslow?

No, Polish. Job done...

[b0redom]

Not as sad as considering building it yourself when you clearly have no building knowledge or experience. Are you Wilmslow?

[ratewhore]

So you are not going to build yourself a conservatory because you don't want to pay the tax on any divvies in the HR tax band?

That is sad...

[css_jay99]

Guessing he's hit the higher rate bracket.

Yes definately have. used div to pay for 2.5yr old X5 last year.

will be taking £5k out before end of tax year to fund kitchen & bathroom refurbishments.

i honestly don know why i bother, i'm probably in negative equity by now

I guess the conservatory will have to wait.

I wonder how difficult it is to build 1 myself i.e foundation and brick work?. any one attempted it?

css_jay99

[MPwannadecentincome]

why worry about CGT - Capital GAINS Tax - which way are house prices heading? Just make sure when you sell it is difficult to work out the gains and if there is a bit of gain then the tax to pay is reduced over time so it may not be such a big bill after all?

[Sockpuppet]

What do you mean maxed out dividends?

Guessing he's hit the higher rate bracket.