As a director of a limited company, if you spend a proportion of time working from home, it may be worth your while setting up a Use of Home Agreement.
You could save over £1,000 per year, compared to paying yourself the same amount in way of salary or dividends.
The agreement allows you to charge the company rent for the use of your home. These amounts paid are an allowable expense for the company and the taxable rental income you receive can be reduced by a proportion of your household expenses.
We can carry out the calculations to work out the potential savings free of charge and if you choose to go ahead, our fee for setting up the agreement is £650 net. We often find that the savings outweigh the fee in the first year alone, especially if you pay mortgage interest on the property.
If you are interested in setting up a use of home agreement, contact Joe Lock, Corporate Tax Accountant, by email on joe.lock@randall-payne.co.uk or alternatively call 01242 776000.
