Working from home allowance on bills

stphnstevey

Pennywise wrote: »

As an employee/director, you can't claim rent or mortgage interest without it being taxable on you - you need consider no deeper than that.

The manual obviously allows someone to claim mortgage/rent etc as they list it as an claimable expense

If an employee can't claim it against Income Tax, then can the Ltd claim it against Corp Tax?

Pennywise

stphnstevey wrote: »

The manual obviously allows someone to claim mortgage/rent etc as they list it as an claimable expense

If an employee can't claim it against Income Tax, then can the Ltd claim it against Corp Tax?

The BUSINESS income manual allows mortgage interest/rent - not the employment income manual.

Yes, the company can claim it, but it has to be paid to the employee. So the employee receives money which is taxable and which there is nothing to set off. Company saves tax, employee pays tax - fairly pointless.

stphnstevey

Ahhh! Now think I understand, thanks.

I suppose some companies might claim the expense but accidently forget to pay the money to the employee......:whistle:..........:A

johnllew

stphnstevey wrote: »

I suppose some companies might claim the expense but accidently forget to pay the money to the employee......:whistle:..........:A

You mean claim a deduction for something that they don't pay for? Fraud perhaps?

stphnstevey

To be honest, I think alot of people won't have gone into this into quite so much depth and actually not realise that the expenses the company claim need to be paid to the employee.

Although ignorance is no excuse

Pennywise

stphnstevey wrote: »

I suppose some companies might claim the expense but accidently forget to pay the money to the employee......:whistle:..........:A

How can they claim an expense that they don't pay? The books wouldn't balance. If the company paid directly, it would be a taxable benefit in kind with tax and NIC charges which makes it even less viable.