yard rent info > can i pay myself the rent

[Dr.Green]

im in process of buying a yard i just moved into , got a few months to sort it out ready to take over it.

 

im buying it for myself privatly outside my business.

 

Now stupid question is , can i charge my business rent to use my private owned yard ?

 

 

 

hope it makes sense,

[Big J]

I honestly don't know, but reading the thread makes me think that it is the kind of thing a member of our parliament might do!

[woody paul]

Put it in wifes name may be better.

[Arbtech Tree Services]

can i charge my business rent to use my private owned yard ?

 

Yes, but you'll have to do it properly. Always best to let the accountant sort it out as regards amounts ie. what you paid for it and how much you charge for rent (in respect of tax liability), then resale as regards capital gains tax.

 

They get you every way:thumbdown:

 

Hope this helps,

 

Kind regards,

 

Steve.

[ruffcutz&goodwood]

Yes you can but If your business is self employed or partenership a declaration of income is required at the end of tax year ( personal income )and yes you guessed it , you have to pay tax on it , seek proper advice I am sure they are other options ,

Steve

[timmins90]

The main issue being with a sole trader is that you and the business are one and the same, it is easier when you are a director of a limited company as there is a clear distinct legal separation between yourself and the business. However you would still need to declare the rent payment on your tax return which you can offset against any interest payments on any loans used to purchase the yard. I would as previously mentioned speak to an accountant about any rental agreements you wish to put in place.

[likeitorlumpit]

You can buy your yard within a personal pension and then pay rent to the pension. Think they are called SIPPS. Get an accountant to set it up legally. Pay a proper commercial rent. That way your business is contributing tax free to your pension. Especially useful if you earn over the 40% tax threshold. I think this is how it works but check.

[Marko]

Yes you can but it must appear on the books of both 'businesses' ie the business based in the yard AND the property rental business you have created. Being a sole trader is not a problem. Owning both is not a problem. Your accountant will advise as to whether it is advantageous to your personal circumstances.

[eggsarascal]

As said you can rent it to your business from another company ie a rental company that you own.

 

My mate rents all his own plant to his company.....One of his companies is called ****groundwork the other is called ****plant hire.

[Pumpy]

Another option to think about for tax efficiency is loaning your company the dosh to buy the land, any repayments the Co makes back to you are subject to corporation tax (20%) but you are not liable for tax on any repayment received, which could work if you pay 40% personal...

 

Disclaimer: this is not tax/legal advice. Only for purpose of discussion, seek professional advice etc. blah blah