"Claiming Back" money for house/electric etc

Mistral001

seismicryan wrote: »

Really? How come?

Ryan

That is my sentiments as well. The poster who said you cannot claims for rates or mortgage needs to have a word with their accountant.

BoGoF

seismicryan wrote: »

Really? How come?

Ryan

Because as you are essentially an employee of the company you fall under the Schedule E rules for expenses which under Section 336 Income Tax Act 2003 must be incurred wholly, exclusively and necessarily in the performance of the duties of the employment. Mortage costs and council tax could not be said to be incurred in the duties of employment.

I suspect you may be getting confused with the rules for the self employed which are more relaxed.

Edit: Not clear from your OP if you mean the company can claim these deductions but is your business address your home. What type of work do you do?

Pennywise

BoGoF wrote: »

Because as you are essentially an employee of the company you fall under the Schedule E rules for expenses which under Section 336 Income Tax Act 2003 must be incurred wholly, exclusively and necessarily in the performance of the duties of the employment. Mortage costs and council tax could not be said to be incurred in the duties of employment.

I suspect you may be getting confused with the rules for the self employed which are more relaxed.

Edit: Not clear from your OP if you mean the company can claim these deductions but is your business address your home. What type of work do you do?

If you're a company director, you just get your company to pay you a rent under licence to occupy some of your home for the company use, then you can set a proportion of all home costs against the rent received, including mortgage interest. A good accountant will deal with all this painlessly.

seismicryan

Pennywise and BoGoF,

Yes I mean I wanted the company to claim the deductions/expenses... and the business is run from my own home, so the payment for these would be made to me..

Pennywise that's an interesting way to look at it... certainly an option but it sounds like that would incur some additional expenses... If I personally am renting a room to the business, would that rent be taxable on my own personal tax return? (I'm registered self employed too so it wouldn't be a problem, just not sure it would be the most economic solution?

Oh and yes I am a director (managing director) of the Ltd company...

Ryan

cavework

Would part of your Community charge for your property then be liable for business rates?
Just wondered

seismicryan

From the limited conversation I had with my accountant a few months ago, he said that there was no problem with using one room in your house for business without incurring business rates charges..

Ryan

cavework

But if you start adding mortgage interest rate etc surely this would apply?
This was the warning we had from our accountant
As far as I know there is a % of the home and facilities used for business purposes that can be reclaimed. Go too far and things can come back to bite you on the bum.

seismicryan

Yeh, From what I understand you can claim a % based on the number of rooms you use as a % of the total rooms...

I think I better get my accountant to give me some details!

Ryan

BoGoF

As things stand your company does not incur the cost of your mortgage or council tax so your company cannot, as things stand, claim these as a deduction.

You haven't said what type of work you do but I think you'll have a hard job convincing HMRC that your company trades from your house. You would be asking for an enquiry into your company/personal tax affairs.

seismicryan

BoGoF wrote: »

As things stand your company does not incur the cost of your mortgage or council tax so your company cannot, as things stand, claim these as a deduction.

You haven't said what type of work you do but I think you'll have a hard job convincing HMRC that your company trades from your house. You would be asking for an enquiry into your company/personal tax affairs.

I am the only full time employee in our company and I work from home, so I am incurring costs working for the company..

The company is in sports equipment manufacture and distribution..

Ryan