Renting my garage to my business?

[flanajb]

If I had my own business could I in theory rent my garage to my business for the amount that falls under the Treasuries threshold whereby I would not need to declare it for personal gain?

https://www.gov.uk/rent-room-in-your-ho ... oom-scheme

Just wondered whether I could do the same for my garage. I don't see why not, especially, if I am using my garage for a business.

 

[gregmcateer]

Sounds a neat little wheeze.

I'm not accountant or tax adviser, but there is a danger Mr Osborne's Merry Men may see this as a circular transaction and therefore not permit an offset. This sort of tax 'avoidance' may only be the preserve of the likes of Starbucks and faux do-gooders like Gary Barlow and Co.

Personally, I'd give it a go - but DEFINITELY get the advice of an accountant - it might be a few quid now, but could save you loads in tax or fines if you are wrong in the long term.

 

[powertools]

Don't think about it, your garage would need to be a business premises and would be subject to business rates.

 

[kostello]

You can claim use of home for business on your tax return....

My accountant fills it in for me but I know you can't take the p!ss

 

[Woodmonkey]

I think it will be exempt from business rates if the property is worth less than a certain value (can't remember what it is but likely that your garage will call into this category)

 

[Myfordman]

You could find that you need council approval of some form to carry out certain categories of business from your home.

When I got planning permission for a workshop attached to my house it was granted on the explicit condition that it was not to be used for a business of any kind.

 

[powertools]

You can get away with running your own home based business from your own home you would have problems renting part of your home to a third party for them to run their business from.

 

[cambournepete]

Yeah, but your business tends to have to be normal office type, not woodworking...

 

[Slinger]

Just watch the Capital Gains Tax aspect upon your house when you come to sell.
Slinger

 

[flanajb]

So although I can easily run a home business using my study, I am unable to run a woodworking business from my garage?

 

[MMUK]

An easy way around this, not strictly above board but hey! Shoot me.

Charge rent on office space but not the garage space. Charge as much as your accountant reckons you can get away with charging and your business can afford. If anyone asks, your garage is for your hobby and you get no income from it.