Claiming for useage of home

[Robwg]

Whats everyone's opinions on this?

My accountants say that it is ok to claim utilities/no. useable rooms in house.

However - looking at this website - this can lead to a Tax investigation and it is better to just claim 2 quid a week (or nothing).

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I do have a home office etc. Is this something everyone generally does - or not bother with?

[OrangeHopper]

Never claimed, never will.

In the early days there was also protential problems with mortgages and house sales. If you claimed a percentage for use of a room then it could be argued that the company had a vested intested in any house price rises and sale. Don't know if this applies any more.

[Nixon Williams]

You can claim for more but most people no longer bother and stick to £104 pa.

Alan

[hyperD]

I claim £60/month on advice from my accountants (seems reasonable to the figures on another site) but then I have a dedicated office room, integrated air conditioning and custom office furniture (designed for client meetings as well) to house several servers (with cooling), business insurance and all work is fixed priced/multi-client/100% own premises.

Problem I'm having at the moment is investment in the office vs capital gains if and when we sell the house.

Are there any resources/pointers showing how the HMCE stands with this particular scenario?

Most of my peers have their own small businesses but have opted for independent offices (funnily enough, the "kids at home" syndrome has an impact on this!)

[VinnyB]

My accountant has advised that I can claim £60/month, and I do. It does seem odd when they know that most of my work takes place at client premises.

[Nixon Williams]

My accountant has advised that I can claim £60/month, and I do. It does seem odd when they know that most of my work takes place at client premises.

The revenue will rarely accept such round sum each month, so if they take a look at you I am sure they will pick on this!

[VinnyB]

Dear NW

But £104pa is still a round figure, albeit a more modest one.

[Nixon Williams]

Dear NW

But £104pa is still a round figure, albeit a more modest one.

Yes it is but it is what the Revenue will allow without question. This rate was recently introduced to "reflect" the increased practice of working from home.


Alan

[BoredBloke]

This is typical of the IR. I work from home 1 or 2 days per week. I spend a lot of time in my 'office'. It has a huge office desk in it and all my kit and books. Imagine trying to rent office spece for 1 day per week and getting it for 104 per year.

The IR have to start realising that in todays world it is possible for people to work from home and so should allow for this.

My Office is not used for anything other than using the computers - it doesn't have a bed in it as there is not enough space.

[Nixon Williams]

This is typical of the IR. I work from home 1 or 2 days per week. I spend a lot of time in my 'office'. It has a huge office desk in it and all my kit and books. Imagine trying to rent office spece for 1 day per week and getting it for 104 per year.

The IR have to start realising that in todays world it is possible for people to work from home and so should allow for this.

My Office is not used for anything other than using the computers - it doesn't have a bed in it as there is not enough space.

You can make a claim for more, its just that the £104pa is available without any need to justify it with receipts etc.

If you do incur higher amounts you need to calculate it as part of the home costs etc.

Alan