Ltd Company Directors -Charging company rent

If your home serves as the base for your company or you conduct a significant portion of your business duties from home, you should consider the following:

🔹 Recharging the company: Just like a traditional home-working employee, you can charge the company for a portion of your bills and running costs.

🔹 Formalizing a license agreement: Create a formal license agreement between yourself and your company, allowing the company to occupy part of your property. In return, the company pays you rent and service charges. You can then claim all your expenses under Self Assessment.

🔹 Renting to your company: If you charge rent, you effectively run a commercial property letting business. This allows you to claim a proportion of relevant overheads and variable costs. Ensure you complete the land and property section of your tax return to declare any rental profit.

🔹 Alternative treatment: Another option is for the director to reclaim expenses from the company following the same guidelines as any home-working employee. However, this generally excludes deductions for mortgage interest, council tax, or mixed-use costs.