Is your company registered at your home?
Do you do most of your work from your home?
If answers to above questions are yes then, YES, you can charge rent to your company for use of your home.
Do I need an agreement for this purpose?
Yes, you will need a licence between yourself and your company for non-exclusive use of a property. Please note, in the absense of any such licence, the rent will be disallowed in company’s tax return. If you need a copy of such agreement, please get in touch with me and I will be happy to provide you one free of cost.
Can I claim mortgage payment and other expenses in my company tax return?
You cannot claim such expenses in your company tax return but, you can do it in your Self Assessment tax return. However, you should declare your rent (from company) income in your Self Assessment Return.
How can I calculate the Rent amount?
That depends on your property as there is not set rule. Always make sure that you don’t end up charging more than market rent.
Can I claim a rent a room relief?
No, rent a room relief cannot be claimed for rooms let for business purpose.