Home insurance for director

MTJR
MTJR Registered Posts: 8
in General accounting discussion
Hi,

Can anyone help me with this -
someone starts a limited company and they are the only shareholder and director. They work from home and because of this their home insurance has increased. How would this work in the company accounts? Is the increased portion included in the accounts?

Best Answers

  • phoenixd
    phoenixd LondonFMAAT, AAT Licensed Accountant Posts: 59
    Answer ✓
    Any expenses incurred on behalf of the business is deductible, so, if the business portion can be isolated, then it can be included in the accounts when working out use of home expenses.
    MTJR
  • phoenixd
    phoenixd LondonFMAAT, AAT Licensed Accountant Posts: 59
    Answer ✓
    Yes, if business is done from home, you can absolutely just use the flat rate to save holding on to docs or doing calcs. Alternatively, you can draw up a rental contract between the director and the company. This is a good option if his total personal income is below the IT threshold.
    MTJR

Answers

  • MTJR
    MTJR Registered Posts: 8
    Thank you. And am I right in thinking you can choose just to use the flat rate of £6 a week for use of home? Would that be instead of working out use of home expenses?
    So there’s a choice between working out the expenses which would include the business part of home insurance, or use the £6 flat rate
  • MTJR
    MTJR Registered Posts: 8
    Excellent, thanks for your help :)

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