Legitimate business expense ???

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errigal

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I have my own Ltd Company (a 1 person operation essentially) My apartment (personally owned) is also the registered address of the company. Can I claim my annual appt management fee as a business expense. If so, all or just a percentage ? Any ideas ?
 
errigal said:
I have my own Ltd Company (a 1 person operation essentially) My apartment (personally owned) is also the registered address of the company. Can I claim my annual appt management fee as a business expense. If so, all or just a percentage ? Any ideas ?
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If you work from the apartment my guess would be a percentage in the same way that some of your electricity/ heating / lighting expenses would be allowable.
 
Be very careful. Even if you worked from home occassionally, trying to claim tax relief on even a pro-rated portion of "home" expenditure could open the door to lots of unforeseen expenses, such as
* stamp duty claw-back
* council/corporation rates for commercial use

Not to mention the dual-use planning permission issues.
 
You may have these point covered already and if you do I apologise

I have my own Ltd Company (a 1 person operation essentially)
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As it is a ltd company I take it there are 2 directors who are aware of their legal responsibilities under the companies acts.

I should have mentioned that I work almost exclusively on a client site.
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I think revenue may have a problem with you working almost exclusively for one client. They may want to treat you as an employee.

In relation to your query you could attract unnecessary revenue attention and open a can of worms. There are also problems in relation to CGT if selling the property.
 
If you are using the apartment for some business purposes, then it seems to me that you could claim some of the expenses. As an example, you are providng the registered office.
 
yes it is the registered office.

There doesn't seem to be any hard and fast rule about this, or indeed what % one can claim. My accountants are being non-committal (not suprisingly) on the subject.
 
It isn't worth the risk. The marginal benefit in terms of tax saved should not amount to a huge sum. On the other hand there is a high risk of attracting unnecessary attention onto yourself, and a high risk of the Revenue unilaterally disallowing the tax claim in the event of any resulting (or future) audit or inspection of your affairs. Such an audit could also generate interest and penalties liabilities. The OCDE www.odce.ie could take a dim view of the affair (and by extension of you) if it ever came to their attention.

Its not worth it.
 
I think revenue may have a problem with you working almost exclusively for one client. They may want to treat you as an employee.
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Given that this a company, would the revenue still have a problem? Would it not be perfectly legitimate for a company to have only one client. I presume that this is a typical contractor type situation, I have a similar arrangement, but one which the revenue have okayed (i am classed as self-employed).
 
I agree with ubiquitous

I run my own limited company from ny home. I only claim a proportionate amount in relation to electricity, heat, phone etc. I ignore other costs such as bin charges, maintenance etc.

Better to have revenue as your friend rather than in any other capacity

C
 
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