Is it possible to enter the rent for your flat as an expense in a sole proprietor if you only carry out your self-employed activities at home?
The tenancy agreement was entered into before the business was started, but certain rooms are used almost exclusively for my self-employed activities.
Hello,
The moment you entered into the rental contract does not actually play a role. It does not matter that the rental contract was already in place before you started your self-employed activity.
For the tax authorities, it is mainly about the actual use. As you yourself indicate, some areas are used almost exclusively for your self-employed activity. That is important for the tax authorities.
But, and this is very important!
Check your rental contract to see if it is allowed. Most rental contracts will state that the flat may not be used for professional purposes. What this actually means is that you may not include the rent as an expense in your accounts.
So, from the moment you see something stated in your tenancy agreement along the lines of 'professional use is not permitted', this does not necessarily mean that you cannot carry out your secondary occupation there, but it does mean that you cannot claim the rent for the flat as an expense in your accounts.
(This has to do with how much taxes your landlord would have to pay on the rental of the flat if you were to include it as an expense, but that would take us too far afield).
I paid the rent privately. Do I just write an invoice from myself privately to myself professionally?
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
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