Charging my company rent

[nimjacole]

Hi All,

I am a newbie to the site and would just like to say that I have read through a number of threads have had learnt quite a few things.

My question is that I have a a small ltd company with my husband however I am self employed freelance and do a lot of admin/bookkeeping for my husband and have prepared by own spreadsheets, accounts, profit and loss etc and all accounts are kept up to date and thorough as possible (including board meetings, dividend vouchers etc)! and will probably submit these to an accountant to check before we submit our CT form as it gets rather confusing when talking about allowances, capital gains etc!!!

However, I was just wondering for my records how much we could in effect rent the space that we use in our house to the company the rent being an amount based on the company's share of the household expenses. Is this right? If so, what figure/share can we expect to use? Rather than the £2 per week we are currently claiming.

The second question is how can I show the separation when I submit my self assessment. I have already done one for this tax year whereby I was freelancing for a company and therefore just declared what I received from them. However, I am getting more home secretarial work and have decided to go self employed but we share the computer and office space and I do my entire husband's bookkeeping.

There is another question but I will submit that in a separate thread - this getting too long!

Thanks very much:redface:

[Basement_Studios_Ltd]

Hi,

First off I would suggest you get yourself an accountant (It will save you money - we are very good! :) ).

Rent to your business aka "Use of Home as Office". We work this out using the following formula;

Rent (or Mortg Int only) = x
Rates, Elect, Gas = y

no of rooms = z

so x + y / z = USE OF HOME! :)

Its sunday....i'm bored so excuse the xyz rubbish....but hope it makes some sense to you.

Rob.

[bwglaw]

I understand there are different rules for Limited Companies and it is not the same rule for sole traders. You need to speak with an Accountant.

[MyAccountantOnline]

The second question is how can I show the separation when I submit my self assessment. I have already done one for this tax year whereby I was freelancing for a company and therefore just declared what I received from them. However, I am getting more home secretarial work and have decided to go self employed but we share the computer and office space and I do my entire husband's bookkeeping

I agree it would be very wise to see an accountant at this stage for some specific advice. If you want to PM me I am in Wiltshire, and will be very happy to speak with you

To answer your second question - I dont think their is going to be any exact method you will just have to do a reasonable apportionment perhaps based on actual usage of the office space.