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Posted Mon, 13 Dec 2021 23:46:10 GMT by Rhian
Hello, I have a new company for which I need to file my first tax return. I opted to register with a virtual office for Companies House and HMRC correspondence in order to keep my home address out of the public domain. My question is, whether this is tax deductible and if I can offset this expense against my trading income?
Posted Thu, 16 Dec 2021 16:28:04 GMT by HMRC Admin 30

You can claim for the expenses you incur wholly and exclusively during the everyday running of your business.

If your virtual office is solely to do with your business, the cost is tax deductible for Corporation Tax purposes. 

Thank you.

Posted Fri, 17 Dec 2021 00:43:30 GMT by Rhian
Thank you for your reply. Yes the virtual office is solely to do with my business. I should have clarified however that there are two elements: registered office and directors service address. Is the latter also tax deductible?
Posted Fri, 24 Dec 2021 14:36:31 GMT by HMRC Admin 10
Hi Rhian

The virtual office costs for both elements will be tax deductible if the costs have been incurred for the purposes of operating the company’s business activities.  

Please refer to HMRC’s Business Income Manual at BIM37000 and BIM42050 onwards for information about the deduction of expenses for tax purposes. 

HMRC’s Business Income Manual can be viewed on the website.



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