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Expense claim on a room in the house for business purposes

  • 28-03-2012 5:36pm
    #1
    Ray Palmer
    Registered Users, Registered Users 2 Posts: 8,513 ✭✭✭


    I am back self employed at the moment and before I used an umbrella company. This time around I have set up my own company. I was told to charge a portion of my mortgage as rent for my office when using an umbrella company.

    I was planning on doing the same with my own company but it seems a little more involved. In theory there CGT on a portion of the property if I do this but at the same time there is the rent a room scheme so I am not sure what way this is done or the ramifications.

    Tax still seems to be very opinion based when it comes to expenses from everything I have ever done.


Comments

  • #2
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    Ray Palmer wrote: »
    I am back self employed at the moment and before I used an umbrella company. This time around I have set up my own company. I was told to charge a portion of my mortgage as rent for my office when using an umbrella company.

    The mods will probably close this thread (see http://www.boards.ie/vbulletin/showthread.php?t=2056143364), so I can't offer you any opinion on your query, but out of curiosity, which contracting agency were you using who advised you on the rent charge when you were using the umbrella co.?


  • #3
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    Can. Of. Worms.

    There is so much here but people need to be aware when they set up a company and the company earns income you will have to pay

    Corporation Tax on income at 12.5%

    THEN Income Tax at your own rates.

    You will also have to pay USC on the earnings and there is a close company surcharge on undistributed income.

    You also have to file company returns. This is NOT optional and there are surcharges which may be mitigated and interest which cannot be mitigated if you do not.

    In short a company is NOT an efficient structure unless you have earnings over 50K or thereabouts.

    That is general advice.

    As to your specific circumstances.........read the charter.

    Thread closed.


This discussion has been closed.
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