: Renting company houses room as director I have limited company in UK, and I d like to buy a house on companies name and rent one room of three to my self(director). what are the complications about these kind of things,

Vote Up Vote Down   0 Reactions

Login to give Reaction!

I have limited company in UK, and I d like to buy a house on companies name and rent one room of three to my self(director).

Might not be worth the hassle, but depends on your situation. I am assuming you want to buy a house in the company's name. Two queries arise, is that house going to be your permanent abode or are you going to rent it out except the single room for your office use ?

If the house is going to be your permanent abode, it is advisable to not go that route. You can rent out the whole house to yourself from your company, but you will need to pay market rent to your company. Don't assume you can pay peppercorn rent and HMRC will look the other way. Any accountant advising you to do so is legally committing fraud.

If you want only to rent out a room, then also the same rules apply. But you can also claim utility bill expenses for the office.

is there a possiblity that HMRC accuses me that I use whole property not just the room?

They can accuse you of doing so and the onus will be on you to prove them otherwise. If you are paying a peppercorn rent then be prepared to have your accounts investigated, a very costly and long drawn out process.