Dedicated home office. How much to charge LTD

[gisp]

So far I have been using the actual cost of my non dedicated home office, based on proportion of the home area, electircty and heating. Not far from the flat rate.

Moving home and I will have a dedicated office. How much do you normally charge your LTD? I am thinking charging the lower end of shared desk cost in a co-working space. Would this be OK?

[malvolio]

ICBW but I thought the allowable cost is a flat rate of no more than £26 a month, depending on dedicated business hours worked. Separate office or not, it's still part of the same property and so available (in HMRC's eyes) for personal use 24/7. Charge more than that limit and BIKs will apply.

I seriously doubt your previous formula was strictly kosher, come to that...

[northernladuk]

I am thinking charging the lower end of shared desk cost in a co-working space. Would this be OK?

No. Just charge the rate as mentioned by Mal. It's not worth trying to do more.

[gisp]

ICBW but I thought the allowable cost is a flat rate of no more than £26 a month, depending on dedicated business hours worked. Separate office or not, it's still part of the same property and so available (in HMRC's eyes) for personal use 24/7. Charge more than that limit and BIKs will apply.

I seriously doubt your previous formula was strictly kosher, come to that...

Actiual costs were suggested by my accountant many many years ago. So far not a problem from HMRC.
By the way I seem to remember the flat rate was increased to £6.xx/week in the last year or so (COVID times), but I dont remember HMRC imposing any hours worked per month condition. Is this something new?
Also, was it not £ per week not month?

[northernladuk]

Actiual costs were suggested by my accountant many many years ago. So far not a problem from HMRC.
By the way I seem to remember the flat rate was increased to £6.xx/week in the last year or so (COVID times), but I dont remember HMRC imposing any hours worked per month condition. Is this something new?
Also, was it not £ per week not month?

As you know about it why don't you go google it?

[malvolio]

Actiual costs were suggested by my accountant many many years ago. So far not a problem from HMRC.
By the way I seem to remember the flat rate was increased to £6.xx/week in the last year or so (COVID times), but I dont remember HMRC imposing any hours worked per month condition. Is this something new?
Also, was it not £ per week not month?

I said ICBW, but the general thrust was correct. Perhaps look up the relevant guidance for yourself, it's page1 on google. £26 pcm is the maximum, it's less if you do less work from home.

The flat rate has been in place for many many years, at much the same level. You can charge what you like, as long as you are ware of the tax implications of doing so and declare it properly on your SAR.

Or are you working on the undetected crime principle that causes our business so many problems...?

[zonkkk]

Be careful with dedicated office for business purposes only. Once you come to sell the property, you will have to pay capital gains on the profit for that part of the house, even if that was your main residence. That alone may be worth more than what you save in business tax, not to mention the hassle.

[Snooky]

Be careful with dedicated office for business purposes only. Once you come to sell the property, you will have to pay capital gains on the profit for that part of the house, even if that was your main residence. That alone may be worth more than what you save in business tax, not to mention the hassle.

I believe you may also become liable for business rates, depending on the level and type of usage - in theory, at least.

[BlueSharp]

Don't forget if your partner works from home they also can claim the home office allowance!

[SimonMac]

So far I have been using the actual cost of my non dedicated home office, based on proportion of the home area, electircty and heating. Not far from the flat rate.

Moving home and I will have a dedicated office. How much do you normally charge your LTD? I am thinking charging the lower end of shared desk cost in a co-working space. Would this be OK?

£6 per week