Running business from home and rent

[helpingperson]

Hi

If there are 2 directors for Tier 1 Entrepreneur visa 200K category, running business from their homes, living separately,

will both of their house rent and utilities expense count towards business expense for part of house they use for their business as office?

If they pay rent in cash, as they are subletting, what proof will they need to claim this expense towards their investment?

Thank you.

[Wanderer]

HMRC allow a claim of £4 a week to cover the extra cost of heating/electricity for circumstances like these.

[helpingperson]

Hi

Thank you.

Could you please answer my main query about rent and payment in cash?

[Wanderer]

Rental of home is a personal expense and nothing to do with running a business so there is nothing to claim and therefore there is no issue.

[helpingperson]

You are incorrect. You better come with some evidence otherwise please stop giving incorrect answers.

[Wanderer]

You are incorrect. You better come with some evidence otherwise please stop giving incorrect answers.

Oh dear, and you got a T1 Ent visa. lol!!! Epic fail...

When you can get tax relief for household expenses

If you have to work at or from home you can get tax relief for the extra household expenses that you have to pay. Typically these extra expenses include:
the extra cost of gas and electricity to heat and light your work area
business telephone calls
You won't be able to get relief on domestic expenses that you're paying anyway - like your mortgage or council tax. You also won't be able to get relief for expenses that relate to both business and private use - such as your telephone line rental, or Internet access.

How much relief you can get

From 2012-13 onwards, for payments of up to £4.00 per week, or £18 per month for monthly paid employees, you don’t need to provide any records of the household expenses you’re claiming relief for. For amounts above £4.00 you will need supporting evidence to show that the amount you are claiming is no more than the additional household expenses you have actually incurred.
The guideline rate for 2008-09 to 2011-12 was £3.00 per week and for 2007-08 it was £2.00 per week.

[helpingperson]

This shows your level of absurdity. Completely going off subject.

I only ask to you to bring some source for your information or stop giving incorrect information.

If you really have some sense, then next time, bring some source, evidence with your answers and then give me remarks.

[helpingperson]

Hi

If there are 2 directors for Tier 1 Entrepreneur visa 200K category, running business from their homes, living separately,

will both of their house rent and utilities expense count towards business expense for part of house they use for their business as office?

If they pay rent in cash, as they are subletting, what proof will they need to claim this expense towards their investment?

Thank you.

Could any senior reply on this please?

Thank you.

[Greenie]

Wanderer has given you a reply and quote from the HMRC website, here

http://www.hmrc.gov.uk/incometax/relief-household.htm

[helpingperson]

Greenie,

Thank you for providing this link which gives me more information that I am looking for.

I will still request any seniors to comment on this please.

Could anyone please reply specifically to my query about rent?

[Greenie]

all you needed to go was google part of the paragraphs that Wanderer quoted and the relevant page on the HMRC website came up. The same page tells you that you can't claim tax relief on domestic expenses that you would be paying anyway, e.g. mortgage or council tax, so I would assume that rent is also treated the same way.

[helpingperson]

Hi Greenie,

Thank you.

I read it somewhere that rent is counted towards business expense, obviously only portion of it which is purely related to business if you are working from you.

I am sure someone can advise on this?

[Greenie]

another very simple google search

http://www.hmrc.gov.uk/manuals/bimmanual/bim47820.htm

[helpingperson]

Greenie,

You have been excellent. By the way, finding information from google about certain subjects in not very simple, otherwise no one bother asking others.

On this page you provided, it is clear that expenses like rent are allowed. All previous comments were either vague,or incorrect.

http://www.hmrc.gov.uk/manuals/bimmanual/bim47820.htm

Fixed costs
Some costs relate to the whole house and have to be paid even if there is no trade use. These include costs such as Council Tax, mortgage interest, insurance, water rates, general repairs and rent.

If part of the home is set aside solely for trade use for a specific period then a part of these costs is allowable. It will normally be appropriate to apportion these expenses by area and time. Some particular points are considered below.


Thank you.

[Greenie]

that's how I found the information...google. If you don't want to make the effort to look for easily available information yourself, then you should probably be more grateful for those who answer your questions and quote from government websites thus saving you the hassle.

[helpingperson]

Greenie,

In all my responses to your comments, I appreciated you and said thank you. How else you want me to show that I am grateful?

I told you that it is sometime not possible to find everything through google so be realistic. If google could do everything for everyone then these forums have no life.

Thanks once again you found valuable information for everyone on Entrepreneur visa.

[Greenie]

i was referring to your responses to wanderer.