Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: tom2009 on June 29, 2010, 08:18:58 pm

Title: paying yourself rent
Post by: tom2009 on June 29, 2010, 08:18:58 pm
for a shed or outbuilding. I've heard of some folks doing it, just wondered if anyone on here does.
Title: Re: paying yourself rent
Post by: Paul Coleman on June 29, 2010, 08:30:36 pm
for a shed or outbuilding. I've heard of some folks doing it, just wondered if anyone on here does.

What is the benefit of this?
Your business would pay less tax but it would just go on your personal tax bill.  If the two are combined it wouldn't make a difference surely?  Or is there a legal workaround?
Title: Re: paying yourself rent
Post by: Smudger on June 29, 2010, 08:35:06 pm
If you own it then you will have to declare it as income so no benefit to you.

if you rent your home and run the business from there you can claim a percentage of the rent.

if you buy a shed that is exclusive use for business then you can claim the cost.

Darran
Title: Re: paying yourself rent
Post by: tom2009 on June 29, 2010, 08:39:47 pm
if you rent it from your wife then less tax for you to pay? Not sure really thats the point of this thread.
Title: Re: paying yourself rent
Post by: Smudger on June 29, 2010, 09:06:17 pm
well then your wife would have to declare the income and again pay tax.


so basically no you cant.

Darran
Title: Re: paying yourself rent
Post by: tom2009 on June 29, 2010, 09:17:26 pm
well then your wife would have to declare the income and again pay tax.


so basically no you cant.

Darran
What if your wife earns under her tax thresh hold?
Title: Re: paying yourself rent
Post by: Smudger on June 29, 2010, 09:28:49 pm
good point.

but is she registered as self employed ? and who brought the shed ? is the property in joint names ?

the only 100% way to know is run it past an accountant.

Darran
Title: Re: paying yourself rent
Post by: tom2009 on June 29, 2010, 09:38:07 pm
interesting init smudger. I think there must be something in the whole idea. Will get the missus to do some research - she likes that sort of thing.
Title: Re: paying yourself rent
Post by: Smudger on June 29, 2010, 09:42:42 pm
let us know what you find out

Darran
Title: Re: paying yourself rent
Post by: tom2009 on June 29, 2010, 09:47:09 pm
will do, no prob.

Tom.

Title: Re: paying yourself rent
Post by: martinsadie on June 29, 2010, 10:18:50 pm
tax man decides you are pulling a fast one with this he might look into the rest of your earnings in more detail,is it worth it  ;)
Title: Re: paying yourself rent
Post by: Londoner on June 30, 2010, 07:38:59 am
She would still have to make a tax return every year to declare her income from property rental. In my experience the inland revenue have heard all these ideas before many times over.
Title: Re: paying yourself rent
Post by: jasonl on June 30, 2010, 07:58:28 am
You just put a line on your accounts ,, "use of home as office"   I always put £1500 a year ,, had 2 inspections , it has never been a problem to the inspector.
Title: Re: paying yourself rent
Post by: AuRavelling79 on June 30, 2010, 04:50:24 pm
You just put a line on your accounts ,, "use of home as office"   I always put £1500 a year ,, had 2 inspections , it has never been a problem to the inspector.

That's interesting Jason - especially as it got passed in two inspections.

Bit more info please?
Title: Re: paying yourself rent
Post by: afssm123 on July 03, 2010, 03:17:47 pm
I am a self employed financial adviser at the moment - getting my stuff together to start my own WFP business.

But my point is I also claim £125 per month for working at home costs on my accounts and this has never caused a problem with the Tax man.

I have been told by my accountant if you genuinely use a room at home for your business (whatever that my be) then you are entitled to put some of the "home" costs down as a legitimate business expense. Just dont try and claim an unrealistic amount

Title: Re: paying yourself rent
Post by: Smudger on July 03, 2010, 04:59:52 pm
costs yes - but the original question was paying RENT to yourself.

Darran