Jul 282010
The situation of use of home is slightly different for directors than for sole traders. In this instance, it may be more straightforward and advantageous for the company to pay rent to the director for the use of their home.
(Make sure that there is a licence agreement in place to cover the rental agreement.)
The rental charge will go through the company’s accounts and it’s corporation tax return. The director will need to report the rental income in their personal self-assessment return, together with the associated costs (ie, mortgage interest, utilities, and so on)
