Claim home rent as business expense

gargargar · 04-02-2015 05:03PM #1

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

srsly78 · 04-02-2015 05:05PM

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.

gargargar · 05-02-2015 04:26PM

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

chickenlicken2 · 05-02-2015 05:35PM

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.

davwain · 10-03-2015 10:08PM

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.

Mr. Incognito · 12-03-2015 12:57AM

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.

AlmightyCushion · 12-03-2015 01:28AM

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?

Cedrus · 12-03-2015 01:55AM

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.

Claim home rent as business expense

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