Use of home costs

[gorses]

This one again.

So, with the crazy costs of running a home £26/month no longer even touches the sides.
Doing a quick calculation (using space & time apportionment ) I reckon £100 is closer to the mark for my circumstances.
The last year or two has completely changed my business. From 100% single onsite clients to 90% WFH with multiple simultaneous clients.
I did look at serviced office space but it's quite expensive compared to my home office.
Maybe time to draw up that rental agreement.

Anybody else ditching the flat monthly allowance?

[eek]

This one again.

So, with the crazy costs of running a home £28/month no longer even touches the sides.
Doing a quick calculation (using space & time apportionment ) I reckon £100 is closer to the mark for my circumstances.
The last year or two has completely changed my business. From 100% single onsite clients to 90% WFH with multiple simultaneous clients.
I did look at serviced office space but it's quite expensive compared to my home office.
Maybe time to draw up that rental agreement.

Anybody else ditching the flat monthly allowance?

Do that and you open up whole areas for HMRC to have fun with - just take the £28

[gorses]

Do that and you open up whole areas for HMRC to have fun with - just take the £28

https://www.contractoruk.com/expense...osts_hmrc.html

If it's all done correctly I can't see the issue.
Surely the £26 is for minor home use, not really appropriate for running a full time business?
Would HMRC bat an eyelid if the company rented an office elsewhere?

[eek]

Check the date of that article.

since then covid arrived and when covid finished HMRC tightened the rules see https://www.theguardian.com/business...-relief-office

[northernladuk]

https://www.contractoruk.com/expense...osts_hmrc.html

If it's all done correctly I can't see the issue.
Surely the £26 is for minor home use, not really appropriate for running a full time business?
Would HMRC bat an eyelid if the company rented an office elsewhere?

No because that is wholly and exclusively for the purpose of business. Your home isn't.

Many of these benefits fall behind the times. 45p a mile is another example. They aren't designed for, and nor is the gov fast enough to be changing them to suit peaks and troughs. Both, for many years, were profitable and now they aren't. That's life I am afraid.

Using the full rental value of the space or whatever calculation you use has long been frowned upon and nothing has changed.

Try and tell yourself you are saving much more by not commuting to the office and be happy that will more than offset the extra cost in the home.

[gisp]

I have always claimed based on the real cost of using home as office. £14/week. Recommended by accountant.
Never had an issue with HMRC (9+ years). Of course this can change, so what?

[malvolio]

I have always claimed based on the real cost of using home as office. £14/week. Recommended by accountant.
Never had an issue with HMRC (9+ years). Of course this can change, so what?

You need a new accountant?

[Lance]

Yes the claimable rate is behind the times. It ain't going to change though. UK Gov wants people back in the office, and more tax revenue (remembering that all those WFH people during the pandemic have cottoned to the free money as well), so don't be surprised if this allowance disappears soon.

It is lot cheaper than renting or travel. So suck it up buttercup.

[gorses]

The claimable rate is for permies working from home. I just want my company to pay its way, not looking for 'free money'.
If the allowance does indeed disappear how will my company pay its way? The mechanisms are there now, I don't see why it is frowned upon. (Not disputing it is/was though)
And 'back to the office' is not an option, I work from my home office for multiple clients every day. Clients no longer want to house contractors in my sector.

[Lance]

The claimable rate is for permies working from home.

It is a personal tax relief. It doesn't matter who you work for.
Your company could pay you £1,000 a month for home office but it would be a taxable benefit.

I just want my company to pay its way, not looking for 'free money'.
If the allowance does indeed disappear how will my company pay its way?

Rent an office. You could even buy a commercial property with your SIPP and rent it to your company (that's legal)

The mechanisms are there now,

they are, but they are complex and if part of your home very difficult to prove there is no duality of purpose

And 'back to the office' is not an option, I work from my home office for multiple clients every day. Clients no longer want to house contractors in my sector.

still cheaper than driving everywhere.


I've got one of these if it helps?