LTC Home Office Expenses

[Nan]

Hi, what is the best way to account for Home office expenses for a LTC.

Previously i have been using an IR10 against my IR3. Therefore there would be no income but several expenses giving a net negative income to offset against my PAYE income. This was how the IRD by telephone advised me several years ago for my LAQC. Is this correct?

recently I saw a P/L statement for a LTC on an accounting website, here they accounted for Home Office expenses on the LTC expenses. Is this more correct?

My concern is that the LTC is a seperate entity, thus the expenses should be lodged against the owner of the property where a room is being used for the office, rather than the LTC.

If claiming the expenses against the LTC was possible it would be easier as it would save me one IR10, still leaving one IR10 for the LTC

cheers
Nan.

[buxlo122]

The home office expenses should be in the accounts of the LTC and the tax return of the LTC. The profits/loss from the LTC will then flow through to the shareholders tax return.

[Rosco]

Agree with above.

LAQC should have been the same.

[Nan]

Thankyou Buxlo & Rosco. Once again it appears you can't always go by the advice from the IRD helpline. I say once again as on researching this there were several stories about the IRD helpline giving incorrect advice.

thankyou
Nan

[buxlo122]

It can be scary the inconsistencies you get from the IRD help line. Often when I am trying to do something with them they will say you can't do that, even though I know they can do that. You hang up, call back and get a different operator, they say sure we can do that for you no problem.