Introduction to this document

Licence agreement (garage)

Where you use your garage for storage on behalf of your company, it can pay you rent. The arrangement should be formalised by a licence agreement which gives the company non-exclusive rights over the property.

Company storage

You will need to record any payment made to you by your company for use of your garage, both in your company’s books (as an expense) and on your own tax return (as income).

On your personal tax return you now get to claim for any additional costs of meeting your company’s requirements for safeguarding those items (stock, records etc.) that are in your garage. Here’s eight to get you started: (1) some products must not be exposed to high or low temperatures, so a proportion of household electricity costs to cover use of a heater (winter) or a fan (summer) in the garage should be claimed; (2) any storage boxes/cages; (3) additional insurance premiums; (4) security measures; (5) additional lighting; (6) weather proofing; (7) smoke alarm, fire extinguisher, sand bucket (particularly for chemical spills) etc.; and (8) the cost of a trolley to move products to and from the car/van - health and safety must be observed at all times.

Back this up with a Licence Agreement (Garage) between you and your company setting out the terms and conditions.

 

Document

licence agreement (garage)

19 Jan 2018
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