How can my company pay its share in my bills?

vb3d

I am about to start my own business by starting a company that I will run from home.
The problem is that it will be using my house utilities to run, which mean I will be paying for its running costs, which I think should be excluded from the company profit..
Is it possible to charge it a share in my bills?
How can I calculate it?
What can/cannot be included?
Is this share classed as an income for myself that I should pay income tax on?


Thanks in advance

Caz3121

https://www.gov.uk/expenses-if-youre-self-employed/overview

TheCyclingProgrammer

Are you starting a limited company?

If not, see the link above. You can normally claim a fair proportion of your household costs or use the simplified method for calculating expenses.

If so, as a director of the company you have the option to claim £4/week tax free (which would also be tax deductible for your business) for working from home without any calculations or evidence.

Alternatively, you can claim any *additional* costs you incur, such as extra water, electricity, heating costs but you would be required to keep evidence of these additional costs and you cannot claim a proportion of any fixed costs like rent/mortgage interest/council tax etc.

You can claim for any business calls you make but not for any broadband or fixed phone line costs unless the contract is in your company name.

There is an option of setting up a rental agreement between you personally and your company. The rent would be tax deductible for your business and treated as taxable rental income for you. You can reduce the tax you pay on the rent by claiming allowable costs - this is useful as you can claim a share of some fixed costs when calculating your rental profits. If you set the rent at a level equal to your allowable costs then there should be no net tax liability on the rent. You might want to speak to an accountant if you go down this route to make sure you get it right.