Re: Use of home as office - allowable expense?


"neverwas" <1@xxx> wrote in message
news:NgQ6j.60160$c_1.48577@xxxxxxxxxxxxxxxxxxxxxxxxxxxxx
That explains your confusion. This thread is not about Sch. E
issues.Then h
He is not alone :)

The OP's post on 8/12 included:

"Mr A rents the house from the landlord as an individual.
Mr A is also a director of his Ltd company. The company's reg address
is his Accountants."

I don't see much room for debate about the CT treatment of any payments to
A by the company (so long as they don't cover entertainment etc).

Agreed.

So is
it not all about the treatment of expenditure by, and payments to, A for
the purposes of A's earnings as director or employee?

I think there's another option - treating A as a provider of office
facilities to a
Ltd Coy. This was in my mind when I mentioned "... include rental income on
his own tax return.", and "...there are the "transactions with directors"
etc declarations to include in his annual wotsits".

ISTM it is in practice as employee so A would need to be ready to answer
questions about the nature of the employment and the employment contract
to justify any claim.

I'm sure that applies if the employer is asking the employee to work from
home. But I would take the view that the Company is asking the employee to
work at the company's premises, and the sourcing and provision of those
premises (by the company) is a quite separate issue. There are plenty of
examples around, and interestingly include guidance on the tax treatment of
"office rent" paid and rec'd by a partnership and a partner where it is not
at normal commercial rates - and I imagine similar treatment would apply in
the case of a Coy & one of its Directors.

--
Martin




.

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