HMRC increase the Home Office allowance

[northernladuk]

Is this tax relief of £4 per week or is this an expense to be processed through payroll with no NI or PAYE tax to be invovled at £4 pw ?

Christ man. I hope you have a good accountant cause your grasp on your accounts is bloody rubbish.

[Waldorf]

By using your home as an office, it gives HMRC a legal right of entry. Its in the legislation.

Where does it say that? I can't see that it give an automatic right of entry any more than they would have a right of entry into any other business.

I can't see that the HMRC heavies are going to come and pay you a visit over £3/£4 week, if you keep your nose clean you have nothing to worry about.

[Sausage Surprise]

Gerrin!! I'll book that world cruise now!

[kingcook]

I currently claim £3 per week through my expenses, so it doesn't hit paye/nic.

Claim through expenses, correct. There is no other way. What made you mention PAYE/NIC?

[jamesbrown]

Where does it say that? I can't see that it give an automatic right of entry any more than they would have a right of entry into any other business.

I can't see that the HMRC heavies are going to come and pay you a visit over £3/£4 week, if you keep your nose clean you have nothing to worry about.

HM Revenue & Customs: FAQ: New Compliance Checks

"Is it true that VAT officers can no longer visit homes?

No. Homes which have no business use could never be entered without permission from the customer. Where a home is used for business such as a VAT registered address an officer may enter and inspect any part that is used for business purposes."

[oversteer]

Christ man. I hope you have a good account cause your grasp on your accounts is bloody rubbish.

[Waldorf]

HM Revenue & Customs: FAQ: New Compliance Checks

"Is it true that VAT officers can no longer visit homes?

No. Homes which have no business use could never be entered without permission from the customer. Where a home is used for business such as a VAT registered address an officer may enter and inspect any part that is used for business purposes."

My home is my registered office so no difference there then. i keep my nose clean so I am not worried about this, I will keep claiming and will increase my claim from April.

[Waldorf]

Claim through expenses, correct. There is no other way. What made you mention PAYE/NIC?

I mentioned PAYE & NIC as Blinko had asked the question(post 9 )

Is this tax relief of £4 per week or is this an expense to be processed through payroll with no NI or PAYE tax to be invovled at £4 pw ?

[Scrag Meister]

I currently claim £3 per week through my expenses, so it doesn't hit paye/nic.

WWS

[d000hg]

HMRC are increasing the allowance contractors may claim for working at home, from £3 to £4 per week.

Contractors and freelancers can be reimbursed for additional household expenses – such as gas or electricity charges - incurred because you have to work from home, probably in order to your limited company administration work.

I was always confused how these set of rules fit in with the other set of rules that cover expensing the % of your utilities & rent/mortgage payments according to the % of your home's floorspace used for an office. They seem like two entirely separate things... the former appears to talk about EXTRA costs (e.g. lights being on for more hours) due to being at home.