Re: Use of home as office - allowable expense?

Martin wrote:

"Ronald Raygun" <no.spam@xxxxxxxxxxxxxxxxxxxxx> wrote in message
news:Jlj6j.59514$c_1.56068@xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Dear Martin,
Please fix your bloody newsreader so that it quotes quoted text properly.

Dear Ronald,
How? It's a known M$oft bug that if people post in "quoted printable",
then OE doesn't "quote" properly.

I'm surprised you need even ask. The obvious fix is not to use MSOE. :-)

Hence my ### things which you seem to have coped with ok :-)

Such coping requires effort. :-(

Tidier would be to have 2 separate contracts with
the landlord.

Not possible, I should think.

Agreed. But would nevertheless be tidier.

You old rogue. If it's impossible, the question of whether it's
tidier shouldn't really arise.

I don't think Sched A is relevant. If his business is not incorporated,
it
can't rent from himself, since he is the same person. Therefore he can't
have rental income from his business.

Agreed - if ST. So why does his accountant advise against it? Because
he's incorporated and not the "same person"?

Possibly. The accountant might not know the OP is renting and could
therefore act as a "conduit". He might think he's an owner-occupier
and would thus be receiving (Sch A) rent from his company. Most likely
the accountant would think that a significant rental expense would be
likely trigger an investigation.

But what he *could* do is say that
a certain fraction of the premises are *exclusively* used for business
and so it can be deemed that his business is renting that fraction from
the landlord and he personally is renting the rest.

And therein lies the snag (if he's a ST). The facts may differ from what
he may say, and HMRC do like to examine the facts - especially since the
issued clearer guidelines on this thorny issue.

I wonder whether HMRC would readily accept that 1/3 is used exclusively
for business 24/7.

Quite.

That's a high proportion for a sales consultant. isn't it?

I would have thought so too, and not just for a sales consultant
(whatever that is) but even for someone who actually does any work.

With some difficulty, it's just about conceivable, though.

Further, the fact he is not, AIUI, paying UBR suggests no part is
exclusively used for business 24/7.

Not necessarily. I think it only suggests that it is not the case
that the whole premises is used exclusively for business. Councils
aren't in the habit of charging fractional rates and fractional
council tax for the same premises are they?

.

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