Reply to: But Live/Work property through the LTD?

[TheFaQQer]

So what's the difference in buying a "normal" property with an extra room or space to suit your work purposes? None from the looks of it.

Differences that I can see:

- If you have one and don't do any work there, you are in breach of the planning laws.
- You need to pay business rates as well as council tax
- Could be liable for CGT when you sell it
- There may be a VATable element on the work part of the building cost

[SueEllen]

So these properties are treated in exactly the same way but are sold to people needing more substantial work space so apportioning bills is reasonable... but it is still classed as a workplace in your home it seems to me,

So what's the difference in buying a "normal" property with an extra room or space to suit your work purposes? None from the looks of it.

[TheFaQQer]

Some people work at home more than others so claim more - but yes generally most people on here claim £4 a week.

I could claim more, since for the past few years I've been 100% at home. But I'm too lazy to do the calculations, so just stick in the £4.

[northernladuk]

Some people work at home more than others so claim more - but yes generally most people on here claim £4 a week.

So these properties are treated in exactly the same way but are sold to people needing more substantial work space so apportioning bills is reasonable... but it is still classed as a workplace in your home it seems to me,

[northernladuk]

And to add to this there page on mortgages...
Live Work Homes - Lenders attitudes to Live/Work

Many comments there about the work element being substantially less than living space, another mentions no visiting customers etc so they all view these as residential mortgages with work space as an exception. So re-enforces my view that you have to view this as a residential property, not one for the business.

[SueEllen]

So from what I see this is no different to owning your own house and claiming some expenses for the office. We do not use substantial offices so we just do the £4 a week (or whatever it is).

Some people work at home more than others so claim more - but yes generally most people on here claim £4 a week.

[northernladuk]

Interesting page..

Live Work Homes - Tax issues for live/work

As it mentions apportioning cost of bills and mortgage interest I would read in to it that this is a residence with a portion put aside for work.

ALLOWABLE EXPENSES

Both live/workers and home-workers can claim as allowable expenses the proportion of power, water, etc used for the business element of the property.
MORTGAGE INTEREST

See here for Live Work Network’s guide to lenders’s terms for live/work mortgages (but bear in mind the volatility of the current mortgage market). If you have been able to buy your property with a single mortgage – residential or commercial – you can claim one-fifth of the interest on this as an allowable expense. But be aware that this may affect your liability to capital gains tax (see below for more on this).

So from what I see this is no different to owning your own house and claiming some expenses for the office. We do not use substantial offices so we just do the £4 a week (or whatever it is).

So back to the original question you would be buying your home through the LTD so it is a bad idea.

[SueEllen]

No. They apply to a company buying a property to provide accommodation.

Do you get the feeling you are wasting your breath?

[TheFaQQer]

Ok, but these rules apply to a company buying a property to provide temporary accommodation right?

No. They apply to a company buying a property to provide accommodation.

[hgllgh]

It's fine there is no issue whatsoever with this, I bow to your brilliance is spotting this idea that nobody else has thought of

That the answer you are waiting for?

errr no ... not really stek

[hgllgh]

I suggest you read again what the other posters have posted.

HMRC allows your company to pay for it's employees and directors to live in temporary accommodation so your company can provide services to it's clients. However the employees and directors must have a separate main residence. This separate main residence is where the employees and directors live when they don't have a contract.

If you don't have a separate main residence then there are regulations covering providing employees and directors with accommodation. One of the accountants, Clare@InTouch, has posted links to this which I suggest you read.

Ok, but these rules apply to a company buying a property to provide temporary accommodation right? But this is not the case with live/work units which are intended for permanent residency for the business owner, so I was guessing that there is a separate classification/set of rules for these properties? ..... Otherwise how do these live/work properties exist in the first place?

[stek]

It's fine there is no issue whatsoever with this, I bow to your brilliance is spotting this idea that nobody else has thought of

That the answer you are waiting for?

[hgllgh]

Link an example of a property you are thinking about?? Am interested to see.

Live Work Homes

no mention of business rates with this one but there are others on the site that do, so maybe some have separate entrances/self contained for the work area?

[SueEllen]

BIK applies to benefits for employees ... this transaction would be separate ... as in my LTD purchasing business premises. Then, as I understand these live/work units, you are then allowed to reside there as your main residence?

I suggest you read again what the other posters have posted.

HMRC allows your company to pay for it's employees and directors to live in temporary accommodation so your company can provide services to it's clients. However the employees and directors must have a separate main residence. This separate main residence is where the employees and directors live when they don't have a contract.

If you don't have a separate main residence then there are regulations covering providing employees and directors with accommodation. One of the accountants, Clare@InTouch, has posted links to this which I suggest you read.

[hgllgh]

Your not convinced BIK applies why?

You need to have somewhere to live as your main residence. So if the work/living property isn't your main residence where do you live?

BIK applies to benefits for employees ... this transaction would be separate ... as in my LTD purchasing business premises. Then, as I understand these live/work units, you are then allowed to reside there as your main residence?