How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13943
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

Sam I run a small business from home which is a limited

Customer Question

Hi Sam
I run a small business from home which is a limited company but I also have a full time job.
I may be moving and wondered if I rent a property to live in but my business will also be trading at that address, can I use my company to pay for some or part of the rent or for some of the deposit required and if so, what are the implications of this from a tax/money point of view?
Many thanks
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Hi

Thanks for your question and for asking for me.

I would not get the limited company involved at all with the renting of this property - as this will then lead to the need for business rates to be charged on the element of the property that is for business - would then lead to a benefit arising (so the need to meet more HMRC requirements with P11d expenses and benefits returns)

But if you have a room set aside then can be identified as purely arising due to the running of the company - then you can claim that throygh the accounts (and make good that amount - just be mindful of the P11db and P11d position)

Plus you may have issues with the renting of such a property from the landlord - who doesnt ant that address at risk of having a compnay trade from it.

But install a separate phone line for telephone and internet for the business etc so these are separated from your personal costs.

OR

I would pay the rent yourself, and as an employee (director) of the company then claim a cost for the use of working from home, through your own self assessment as an expense to reduce your own tax position (and other associated costs such as phone/internet/lighting/heating etc

Thanks

Sam