Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Claim home rent as business expense

  • 04-02-2015 4:03pm
    #1
    gargargar
    Registered Users, Registered Users 2 Posts: 249 ✭✭


    I am a director of a company and also paid a salary by it. I am paying rent on my home and I work from it most days.

    Can I claim some of my home rent as a business expense? I was thinking that the company could pay some of my rent directly and reduce my salary by the amount? Would that be acceptable to the revenue (assuming company fine to do this)?

    Thanks


Comments

  • #2
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    Talk to your accountant to confirm. Your personal accommodation is NOT a business expense. However if you were to use 1 room in a 4 bedroom house, then it may be reasonable to claim 25% of your rent. Similarly with a percentage of the electricity/heating/communications bills.


  • #3
    gargargar
    Registered Users, Registered Users 2 Posts: 249 ✭✭gargargar


    Thanks. I wasn't sure if this would be available to a PAYE director. I will chat to our accountant.


  • #4
    chickenlicken2
    Registered Users, Registered Users 2 Posts: 171 ✭✭chickenlicken2


    Your accountant will be able to advise however you should also check the terms of your lease as it may prohibit business activity if it's a residential lease.


  • #5
    davwain
    Registered Users, Registered Users 2 Posts: 94 ✭✭davwain


    Several years ago, I started a business in Canada, and, for part of that year, paid rent on an apartment. I claimed, based on the surface area of the space I used as my home office, the rent applicable on that portion. So far, Canada's equivalent to HM Revenue and Customs hasn't had a problem, and I don't think it ever will come after me. I don't know what the deal is for Irish resident taxpayers.


  • #6
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    If you claim any of your home as an expense you waive the cgt principal private residence relief on it so your saving of a few hundred can cost a quarter of the value of your home taxed at 33 percent when you sell it.

    Short term tiny save. Long term huge exposure.

    Dont do it.


  • Advertisement
  • #7
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,125 Mod ✭✭✭✭AlmightyCushion


    Mr. Incognito wrote: »
    If you claim any of your home as an expense you waive the cgt principal private residence relief on it so your saving of a few hundred can cost a quarter of the value of your home taxed at 33 percent when you sell it.

    Short term tiny save. Long term huge exposure.

    Dont do it.

    The OP is renting so are there any downsides to doing this if you are a renter?


  • #8
    Cedrus
    Registered Users, Registered Users 2 Posts: 1,429 ✭✭✭Cedrus


    You can claim a portion of your bills, but my accountant has advised me that rent or a portion thereof of a shared use space like a house is no longer claimable in Ireland due to all the P-takers who were "renting" buildings that they actually owned.
    It's different if it's in a dedicated space (office building, Workshop etc.) or if you have multiple employees also working there.

    Best to get the most up to date position from your accountant.


Advertisement