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Where Taxpayers and Advisers Meet

Sole Trader Renting Property

Bill001
Posts:20
Joined:Wed Aug 06, 2008 3:12 pm

Postby Bill001 » Wed Nov 23, 2005 12:26 am

I am self employed and with my wife own a wharehouse/office and an area of agricultural land that I use for the work that I do. My question is this:

Can I rent the property to myself & wife and then claim this as a business expense? And then claim the rent as a seperate income (on which NI is not payable)?

Are there any possible difficulties that I might encounter with this?

Many thanks,

Mike

JasonButcher
Posts:39
Joined:Wed Aug 06, 2008 3:24 pm

Postby JasonButcher » Wed Nov 23, 2005 8:19 am

I know if your business was incorporated then yes you could rent the property at a market rent. This is a good method to extract funds from the business and avoid National Insurance.
I think as you are self employed it would not work.

Bill001
Posts:20
Joined:Wed Aug 06, 2008 3:12 pm

Postby Bill001 » Thu Nov 24, 2005 12:52 am

The properties are owned equally by my wife and myself. So presumably she could recieve rent from my self employed activities?

Thanks,

Mike

Bill001
Posts:20
Joined:Wed Aug 06, 2008 3:12 pm

Postby Bill001 » Fri Dec 09, 2005 12:49 am

Could I therefore pay my wife a rent for her share of the property? Effectively 50 percent of the rent?
Thanks,

Mike

JasonButcher
Posts:39
Joined:Wed Aug 06, 2008 3:24 pm

Postby JasonButcher » Fri Dec 09, 2005 1:05 am

I would imagine so.
But the rent would have to be the market rent.


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