Rent as a business expense

[northernladuk]

Who has allowed you to do this?

40 hours a week isn't 1/3 of a week. 'Wholly and Exclusively' is the test for allowable expenses, so rent on a private residence would not normally be allowable.

Have a look at his posting history and some of the other advice he's given. Then you'll know whether to bother with anything said in the post you are questioning.

[chopper]

I work from home, because the company has no office in the UK. And I am allowed to claim 1/3 of my rent as a business expense. Literally because I am using it as my sole office, for 8 hours a day.

Who has allowed you to do this?

40 hours a week isn't 1/3 of a week. 'Wholly and Exclusively' is the test for allowable expenses, so rent on a private residence would not normally be allowable.

[Matt88]

Hello all,

Newbie here and to the world of contracting.

I started back in March this year. I have registered my personal residence as my business address, although I work onsite for the contracting role.

Am I able to claim my rent (which is both my personal and business residence) as a business expense? I could change my work patterns slightly as there is an option to work from home on occasions (which is my business address in this case), or will HMRC say this is illegal / not a business expense?

Also, can I claim back personal expense (from my limited company) for the rent that I have paid so far since March?

Many thanks in advance for any advice / help, and apologies if this has been posted before.

Of course not lol. If it was that easy to trick the taxman everyone would do it. Unfortunately, your idea is more likely to lead to an audit and a big bill.

I work from home, because the company has no office in the UK. And I am allowed to claim 1/3 of my rent as a business expense. Literally because I am using it as my sole office, for 8 hours a day.

But this is very different circumstances to you

[NCOTBAC]

Just out of interest, why is it an issue?

It's bad enough the bills and post that some ex tenants leave. I'm not up for dealing with something else. I don't know what trouble it could cause but it's in my contract so they don't do it. It's a risk I don't want.

[MonkeysUncle]

It depends on the nature of business. As long as it doesn't cause too much disturbance or rack up the bills you can.

https://www.simplybusiness.co.uk/kno...ntal-property/

[rogerthedodger]

I used to rent an office for my business, for about 11 years, and yes it was a tax deductible expense (obviously). If it's also a private residence, then maybe not. If outside IR35 then I would have thought you could claim a % of the rent. What does your accountant say?

[ladymuck]

I do a bit of my own digging on my tenants from time to time which includes searching the address and them as directors so would be pretty easy to spot. Not had an issue to date but I'd certainly have an issue if my property appeared as a registered address.

Just out of interest, why is it an issue?

[NCOTBAC]

Can't see how they'd find out or what they'd do if they did, tbh.

I never asked on my old rental *shrug*. Of all the things to worry about in life, I'm not going to add that one.

I do a bit of my own digging on my tenants from time to time which includes searching the address and them as directors so would be pretty easy to spot. Not had an issue to date but I'd certainly have an issue if my property appeared as a registered address.

[vwdan]

Pretty much no rental contracts allow a business to be registered. I go ahead and do it anyway as my accountant doesn't offer registered office service. I keep meaning to find an alternative solution but am too lazy.

Can't see how they'd find out or what they'd do if they did, tbh.

I never asked on my old rental *shrug*. Of all the things to worry about in life, I'm not going to add that one.

[ladymuck]

Pretty much no rental contracts allow a business to be registered. I go ahead and do it anyway as my accountant doesn't offer registered office service. I keep meaning to find an alternative solution but am too lazy.

[MonkeysUncle]

From what I remember you also need written permission from your landlord if you are going to register a business where you are renting.
I know some rental contracts do not allow this as well. Worth checking.

[NCOTBAC]

No.

[SimonMac]

Hello all,

Newbie here and to the world of contracting.

I started back in March this year. I have registered my personal residence as my business address, although I work onsite for the contracting role.

Am I able to claim my rent (which is both my personal and business residence) as a business expense? I could change my work patterns slightly as there is an option to work from home on occasions (which is my business address in this case), or will HMRC say this is illegal / not a business expense?

Also, can I claim back personal expense (from my limited company) for the rent that I have paid so far since March?

Many thanks in advance for any advice / help, and apologies if this has been posted before.

No

[yonyonson]

Hello all,

Newbie here and to the world of contracting.

I started back in March this year. I have registered my personal residence as my business address, although I work onsite for the contracting role.

Am I able to claim my rent (which is both my personal and business residence) as a business expense? I could change my work patterns slightly as there is an option to work from home on occasions (which is my business address in this case), or will HMRC say this is illegal / not a business expense?

Also, can I claim back personal expense (from my limited company) for the rent that I have paid so far since March?

Many thanks in advance for any advice / help, and apologies if this has been posted before.