Can I Charge Myself Via Limited Company

[UKSBD]

I have a cottage that I am doing some work on.

Is there any reason why I can't do the work in my company time and invoice myself via the company?

Company isn't Vat registered.

 

[JEREMY HAWKE]

You have had some lunch time beverages

 

[MyAccountantOnline]

I have a cottage that I am doing some work on.

Is there any reason why I can't do the work in my company time and invoice myself via the company?

Company isn't Vat registered.

Do you mean you own the cottage and also have a limited company and want to invoice yourself for services provided by your company?

What level of costs and what work is involved?

 

[UK Contractor Accountant]

what's the point of that?

company will be ctax on the income at 19% or maybe 26.50%
you will get tax relief at 20% against the rental income (that's if rented out)

 

[UKSBD]

Do you mean you own the cottage and also have a limited company and want to invoice yourself for services provided by your company?

What level of costs and what work is involved?

Yes, I personally own the cottage.

I have a limited company that provides handyman services (amongst other services)

I would like to do the work through my limited company and then invoice myself.

Everything would be at arms length charging genuine rates.

Edit to add: Level of costs would be around £1,000 - £2,000

 

[TaxBix]

Only the margin gets taxed though, not the full £2,000, materials come off first. And if it's let, an improvement gets you no relief now regardless.

 

[UKSBD]

Thanks, but not doing it for tax purposes.

I want to know if I am allowed to do it or not.

It is things that are recommended to improve my EPC; draught proofing, loft insulating, etc.

I have had quotes to do it that are about £1800

If I pay someone else to do it I can then claim a MEES exemption, but if I do it myself as a DIY project I can't.

Doing it through my Limited company seems the obvious solution, as I'm effectively paying myself but can still claim the exemption (hopefully)

 

[UK Contractor Accountant]

want to know if I am allowed to do it or not.

Before the Companies Act 2006, every UK company had to include an objects clause in its memorandum of association. That changed on 1 October 2009, when the final provisions of the Companies Act 2006 came into force, removing the requirement for most companies.

An objects clause is a provision in a company’s articles of association that defines its purpose and limits the activities it can carry out.

Companies may still choose to restrict their activities by voluntarily including an objects clause in their articles of association.

So, basically the company can do what it likes provided its not a restricted activity e.g regulated sector without official approval. etc

 

[Newchodge]

Yes, I personally own the cottage.

I have a limited company that provides handyman services (amongst other services)

I would like to do the work through my limited company and then invoice myself.

Everything would be at arms length charging genuine rates.

Edit to add: Level of costs would be around £1,000 - £2,000

If you refer to your limited company and not as 'I' it isn't a problem. It only looks as if it may be because you are not separating you as a person and the company as a separate legal entity.

 

[MyAccountantOnline]

Yes, I personally own the cottage.

I have a limited company that provides handyman services (amongst other services)

I would like to do the work through my limited company and then invoice myself.

Everything would be at arms length charging genuine rates.

Edit to add: Level of costs would be around £1,000 - £2,000

In terms of tax provided it is a genuine commercial tranaction no reason why you cant do it.

 

[TaxBix]

One thing to check first, the exemption evidence is meant to come from separate installers. An invoice from a company you control might not pass.

 

[UKSBD]

Thanks all

 

[Daybooks]

Thanks, but not doing it for tax purposes.

I want to know if I am allowed to do it or not.

It is things that are recommended to improve my EPC; draught proofing, loft insulating, etc.

I have had quotes to do it that are about £1800

If I pay someone else to do it I can then claim a MEES exemption, but if I do it myself as a DIY project I can't.

Doing it through my Limited company seems the obvious solution, as I'm effectively paying myself but can still claim the exemption (hopefully)

You can do what ever you like so long as it is lawful. From the individual’s standpoint I would question whether the company you want to contract is up to the job and from the company’s standpoint whether the individual will pay its bill.
As for certification as long as there is no deception….