Use of home as office - Limited Company

Accounting
1

I am the sole director of my limited company and run the business from my bedroom.

As far as I understand, I am able to charge the company £18 per month for the use of my home as my office. Is this correct?

Can I just create a purchase invoice for the amount addressed to myself and pay it out of the director’s loan account?

How do I tag the invoice (as there is no specific “Use of home” account in chart of accounts) - can I put it under “Premises Expenses”?

Thank you!

2

There are some HMRC examples here:

http://www.hmrc.gov.uk/manuals/bimmanual/bim47825.htm

And the associated rates can be found here:

http://www.hmrc.gov.uk/manuals/bimmanual/bim75010.htm

Regarding the second part of your question, I’m not an accountant so it’s always best to seek professional assistance on these matters. Typically you would invoice your Limited company for the usage of your home as an office.

3

Thank you for the quick reply, Glenn!

Can I just confirm that these links apply to limited companies as well - they seem to be talking about self-employed people?

Regarding the invoice, I can certainly do that. However, would I still need to create a purchase invoice in QF? Can I not just create a purchase invoice in QF for the charge?

Could you also recommend what category (account) should I be using for this charge?

4

These two links may be of some interest. As @Glenn suggests, it may be best to speak to your accountant to see what applies to you exactly.


5

esuk, did you find out a method for this as I’d like to know how myself?
Thanks