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Previously on "Use of home / rental / business purchase - best choice when building extension?"

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  • NotAllThere
    replied
    Thread locked. Egregiously nasty posts removed.

    Leave a comment:


  • SueEllen
    replied
    Originally posted by The Tall Designer

    Wait why am I trolling? I'm a contractor, I've got a real question, I genuinely thought people here would know and be able to offer some help - what have I done wrong? Why on earth is this possibly trolling?
    Do you like gladiators?

    Leave a comment:


  • northernladuk
    replied
    Originally posted by The Tall Designer View Post

    Maybe, but I own the house and the business with nobody else (no partners, marriage etc) so if thats a thing, I could do it. I mean I expected the rental agreement thing to be the easiest way of doing it, given the issues with capital gains and all sorts of other crap. I'm just trying to find out for sure what the full options are and expressly not just doing what the majority do 'cos they are so often... wrong.
    It isn't. The easiest thing to do is claim the weekly/monthly allowance that is place for just this type of thing.

    not just doing what the majority do 'cos they are so often... wrong.
    Really? They are? Sweeping statement to say you don't appear to know what the majority are doing.

    Er, it doesn't of course - thats the second of the two options I was looking at, as more tax efficient than 'use of home office"
    Have you crunched the numbers to see if it is tax efficient? More so than the third option you keep ignoring?

    Why is this place so hostile!?
    Because you didn't bother to take 2 mins to look at where this should go in the forums. We have a Accounting/Legal section but you've dropped it in General. The subheading of this section is 'All hope abandon ye who enter here. Seriously.' for a very good reason as you are finding out. Little to no moderation here so it's open season on you for the daft idea and still defending it 4 pages in. Tends to be what trolls do in General unfortuantely.
    Last edited by northernladuk; 11 August 2021, 17:48.

    Leave a comment:


  • minestrone
    replied
    Have you considered an ecoshed?

    Leave a comment:


  • The Tall Designer
    replied
    Originally posted by Paralytic View Post

    Ok, so have you accepted that getting the business to pay £40K to build an extension onto your home is a non-starter?

    Assuming so, the question you're actually asking is "Can I rent out part of my home to my company?". It matters not that you've will have just personally spent 40K on extending your home.
    Accepted? This isn't a fight, we're not in court, I'm asking questions because I want to know what the facts are - I could easily be wrong - thats why I am asking my genuine peers who I thought might want to be helpful.

    And I don't think that the 40K part matters - if there is a rental agreement - I quite plainly said I was looking at two things and one was rental, one was doing something as a cost to the business.

    Instead people are having a go at me and accusing me of trolling when all I am doing is asking a question! I'm not an accountant and mine is bloody slow - so I am asking people in similar situations.

    Why is this place so hostile!?

    Leave a comment:


  • minestrone
    replied
    Yes, but your business is limited and the mortgage will be joint and several, so if you piss off, the business is liable for the whole thing.

    If the property is more than 60% for business then it can be covered as unregulated, so someone will lend to you. For a cost.

    Leave a comment:


  • Paralytic
    replied
    Originally posted by The Tall Designer View Post

    Maybe, but I own the house and the business with nobody else (no partners, marriage etc) so if thats a thing, I could do it. I mean I expected the rental agreement thing to be the easiest way of doing it, given the issues with capital gains and all sorts of other crap. I'm just trying to find out for sure what the full options are and expressly not just doing what the majority do 'cos they are so often... wrong.
    What's to stop you selling the business (either in part of in whole) in future? That's why no mainstream mortgage company will entertain a business part-owning your home. You might get some interest from commercial mortgage lenders, but be prepared to pay significantly higher mortgage rates that the high street lenders.
    Last edited by Paralytic; 11 August 2021, 16:56.

    Leave a comment:


  • Paralytic
    replied
    Originally posted by The Tall Designer View Post

    Er, it doesn't of course - thats the second of the two options I was looking at, as more tax efficient than 'use of home office"
    Ok, so have you accepted that getting the business to pay £40K to build an extension onto your home is a non-starter?

    Assuming so, the question you're actually asking is "Can I rent out part of my home to my company?". It matters not that you've will have just personally spent 40K on extending your home.
    Last edited by Paralytic; 11 August 2021, 16:55.

    Leave a comment:


  • The Tall Designer
    replied
    Originally posted by minestrone View Post
    Business would either need to be on the deeds of have a charge on the property.

    Your first charge lender would tell you to feck off. Probably.
    Maybe, but I own the house and the business with nobody else (no partners, marriage etc) so if thats a thing, I could do it. I mean I expected the rental agreement thing to be the easiest way of doing it, given the issues with capital gains and all sorts of other crap. I'm just trying to find out for sure what the full options are and expressly not just doing what the majority do 'cos they are so often... wrong.

    Leave a comment:


  • The Tall Designer
    replied
    Originally posted by Paralytic View Post

    Which part of that talks about putting £40K of build costs through the business?
    Er, it doesn't of course - thats the second of the two options I was looking at, as more tax efficient than 'use of home office"

    Leave a comment:


  • minestrone
    replied
    Business would either need to be on the deeds of have a charge on the property.

    Your first charge lender would tell you to feck off. Probably.

    Leave a comment:


  • Paralytic
    replied
    Originally posted by The Tall Designer View Post

    This - https://caseron.co.uk/renting-home-o...space-company/ - is the sort of thing in case anyone is wondering.
    Which part of that talks about putting £40K of build costs through the business?

    Leave a comment:


  • Paralytic
    replied
    Originally posted by The Tall Designer View Post

    'cos it was knackered and barely standing up. Now it's 35% bigger and really nice to use.
    I hope that 35% bigger extension was put through the business.

    Leave a comment:


  • The Tall Designer
    replied
    Originally posted by northernladuk View Post

    You need to wait for your accountant. If they are any good they'll push you down the use of home office route like nearly everyone does. That is the best way.

    If the house is that small don't kid yourself it's dedicated. It will be used by you for non business as well so not dedicated. Have you actually done any fag packet calcs for this or have you just decided you like the idea for no other reason than it sounds good?

    We get a ton of these threads where people get giddy with these ideas where the real answer is completely different and has been used by 10s of thousands of work from home people. You aren't inventing anything new here and just because you like the sound of it it doesn't mean it's the best option.
    Er - thats why I'm asking here? Sadly the search function is crap so looking for the phrase "use of home" was a non starter and I couldn't find any other threads.

    If it's the "Best Way" cool - but I am trying to find out why, its definitely not the "best way" for everyone, so what are the reasons it is / not?

    As for the dedicated thing, it only needs to be during office hours which is funnily enough when I am in it working and only occasionally wanking.

    I don't at all think I am big or clever or coming up with something new - it's just in my experience of 14 years running my own Ltd and having 4 accountants now - that other contractors - hello! - have a better idea of what can and cannot be done. My accountant didn't even remind me about trivial benefits.

    Fag packet calcs, well a rental agreement seems to be far more money coming out than use of home, given a dedicated serviced office nearby, a room all of my own not open plan, is about a grand a month. That seems like money left on the table - if I fit the criteria. SO I am here, trying to fin out as the Rev are tulip at giving specifics as we all know.

    If you don't know / can't help / don't want to help - cool beans man I'm just asking, please go about your business, move along, these are not the droids you're looking for.
    Last edited by The Tall Designer; 11 August 2021, 16:31.

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  • northernladuk
    replied
    Originally posted by The Tall Designer View Post
    Aaaaanyway - all I'm trying to do is pay the least amount of tax I legally can do without getting in the crap from the rev. Especially as I worked there two years. I will have a dedicated office in about 4 weeks and if a rental agreement is the best way, happy days I'll do that innit.

    This - https://caseron.co.uk/renting-home-o...space-company/ - is the sort of thing in case anyone is wondering.
    You need to wait for your accountant. If they are any good they'll push you down the use of home office route like nearly everyone does. That is the best way.

    If the house is that small don't kid yourself it's dedicated. It will be used by you for non business as well so not dedicated. Have you actually done any fag packet calcs for this or have you just decided you like the idea for no other reason than it sounds good?

    We get a ton of these threads where people get giddy with these ideas where the real answer is completely different and has been used by 10s of thousands of work from home people. You aren't inventing anything new here and just because you like the sound of it it doesn't mean it's the best option.
    Last edited by northernladuk; 11 August 2021, 16:00.

    Leave a comment:

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