Anybody good with figure?

[Chalked]

I have a couple of rental houses. One tennant has left, and the new one is not moving in until July. It needs the bathroom updating, so I'm going to do it next week.
here's the conundrum!

if I do it, then invoice it to the rental house. I will be able to claim tax relief on the property. But, will pay tax on the invoice to my business.
So im thinking, I will just do it and the business can stand my time and the bathroom suite. This way I will claim back the vat through the company and no tax is paid.??

am I right??
or is there a better way?

 

[lame plumber]

not worth worrying about either way you claim the suite as an expense, just your time to install it required, not really worth charging to the flat as all gets taxed one way or another.

 

[Masood]

I have a couple of rental houses. One tennant has left, and the new one is not moving in until July. It needs the bathroom updating, so I'm going to do it next week.
here's the conundrum!

if I do it, then invoice it to the rental house. I will be able to claim tax relief on the property. But, will pay tax on the invoice to my business.
So im thinking, I will just do it and the business can stand my time and the bathroom suite. This way I will claim back the vat through the company and no tax is paid.??

am I right??
or is there a better way?

Depends on how you've structured your directorships (assuming Ltd co?).

If you are director of the plumbing firm, and earn below the 40% threshold, and someone else is director of the rental firm and is above the 40% threshold, then the less they earn and the more you do (up to the threshold), the more tax efficient it is to invoice the rental firm.

If you're director of both then it makes no difference unless you earn no salary or dividends from one of the firms. If it's all one business then you need a better accountant!

 

[Ray Stafford]

As Masood says, it depends on how you have structured your affairs.

However, if you own both the property and the plumbing business 100%, and either a) they are both VAT registered or b) neither of them is VAT registered, then its probably best in the long run not to charge it at all. By creating an invoice you are only moving assets around your personal portfolio, and inviting the chancellor to take a portion of the transaction.

 

[Chalked]

..

As Masood says, it depends on how you have structured your affairs.

However, if you own both the property and the plumbing business 100%, and either a) they are both VAT registered or b) neither of them is VAT registered, then its probably best in the long run not to charge it at all. By creating an invoice you are only moving assets around your personal portfolio, and inviting the chancellor to take a portion of the transaction.

Yippee! No paperwork,

 

[rocketmanbkk]

Remember with rental you can't claim the labour charge if you DIY

Accountant told me that last year, worth checking