Can my business pay my mortgage?

[cowboyengineer]

You can, but the way my accountant described it, you would then need to declare the income from renting your house out to a business on your personal tax return so it’s not much different

[Evolved]

BGARK said:

What if the house wasn't mine?

How would you have a mortgage on a house you don’t own?

[cowboyengineer]

Then it would be on her personal tax. Like a second income for her.

I don’t know if there is any tax relief on it like if you rent a room out in your home.

[red_slr]

Weird that your daughter owns your house that you live in? Normally its the other way around?

[LooneyTunes]

Don’t forget to look at planning and insurance too!

Worth speaking to a proper accountant on the tax side of things, especially if the business will in any way fund that workshop build.

[rustyuk]

I looked into building a workshop for my business at my home address.

First you must overcome all planning obstacles as you can't just build a production site on a residential plot. Another complication is then having capital gains applied to the sale of the property.

Finally, trying to get around the rules by paying rent as already mentioned ends up on someones tax return.

[red_slr]

BGARK said:

red_slr said:

Weird that your daughter owns your house that you live in? Normally its the other way around?

She purchased it as a first-time buyer, saved us around £55k, what's not to like?

Just watch out for when you come out of the other end, you might need to be aware of that but I am sure you are.

[PH User]

Sounds like lots of dodgy deals going on ha ha

[BGARK]

PH User said:

Sounds like lots of dodgy deals going on ha ha

Please explain what you mean?

[geeks]

BGARK said:

Evolved said:

BGARK said:

What if the house wasn't mine?

How would you have a mortgage on a house you don’t own?

Sorry, I wasn't clear, the house was purchased in my daughter's name, I am guarantor only on the mortgage, nothing else and not on the deeds.

So it's her mortgage and your rent.

I suspect this thread wont go the way you hope it will...

[Pixelpeep 135]

You just never know which way the crowd will go.


i love it!

[geeks]

Pixelpeep 135 said:

You just never know which way the crowd will go.


i love it!

[deckster]

BGARK said:

PH User said:

Sounds like lots of dodgy deals going on ha ha

Please explain what you mean?

Is the mortgage provider aware that your daughter is not living in the house?
Did you provide anything towards the house deposit?
Are you paying a market rent?
Is your daughter declaring the rental income to HMRC?
Have you signed a formal tenancy agreement?

You might be in for a nasty shock if HMRC decide that actually the whole thing is a sham and you (as indeed is the case) are just trying to avoid paying a bit of stamp duty.

[Pixelpeep 135]

IBTL now, after the OP requests a thread deletion

Looks like you've done this sort of thing before OP!

https://www.pistonheads.com/gassing/topic.asp?h=0&...

Edited by Pixelpeep 135 on Friday 30th July 15:08

[Monkeylegend]

Ooooooooooooooof back of the net

[BGARK]

I have helped my daughter buy her first house, which I/we will also live at, It's not our only property plus I am moving a business and need to use the same location for a while during the transition, all was on hold because of covid.

We are going to be recruiting numerous people for positive reasons.

How about helping instead of taking the piss.

[BGARK]

deckster said:

Is the mortgage provider aware that your daughter is not living in the house?
Did you provide anything towards the house deposit?
Are you paying a market rent?
Is your daughter declaring the rental income to HMRC?
Have you signed a formal tenancy agreement?

You might be in for a nasty shock if HMRC decide that actually the whole thing is a sham and you (as indeed is the case) are just trying to avoid paying a bit of stamp duty.

You have just assumed a bunch of things that are incorrect, why is that?

[Mr Pointy]

BGARK said:

Hello,

I think something like this has been asked before?

I am going to be working full time from our house soon, which is large enough to also have a couple of office staff based on site.

We have a lot of land, and as engineers, we are going to build a new workshop for R&D and prototype production, eg 3D printing, CNC machining, welding etc on a small scale before it goes off to our commercial site.

Can I offset any of the main mortgage against this for genuine work use?

If I can, by what percentage and how to justify correctly in our accounts?

BGARK said:

Sorry, I wasn't clear, the house was purchased in my daughter's name, I am guarantor only on the mortgage, nothing else and not on the deeds.

We wouldn't want this to be accidentally lost.

[BGARK]

Pixelpeep 135 said:

IBTL now, after the OP requests a thread deletion

Looks like you've done this sort of thing before OP!

https://www.pistonheads.com/gassing/topic.asp?h=0&...

Edited by Pixelpeep 135 on Friday 30th July 15:08

This topic was about a demerger to move assets into a new company, so what?

Edited by BGARK on Friday 30th July 15:26

[Monkeylegend]

BGARK said:

deckster said:

Is the mortgage provider aware that your daughter is not living in the house?
Did you provide anything towards the house deposit?
Are you paying a market rent?
Is your daughter declaring the rental income to HMRC?
Have you signed a formal tenancy agreement?

You might be in for a nasty shock if HMRC decide that actually the whole thing is a sham and you (as indeed is the case) are just trying to avoid paying a bit of stamp duty.

You have just assumed a bunch of things that are incorrect, why is that?

They all look like questions to me not assumptions.