How to work out expenses for mortgage?

[d000hg]

Take this advice. For the miniscule amount you'd be saving, it isn't worth providing HMRC with a reason to question your sums (as well as the potential issues with business rates and capital gains if you're claiming a work area as wholly and exclusively).

If you actually WFH there is nothing dodgy about this. The % of floor plan calculation could lead you to claim £1k or more a year, what kind of real business doesn't claim expenses it is able to?

I think I worked mine out as up to £100pcm but dropped it to £50 since I don't want to measure my house, and want it to be well inside any valid calculation. But that's based on rent of £650pcm, many would be paying far more than that.

[Sally@InTouch]

If you actually WFH there is nothing dodgy about this. The % of floor plan calculation could lead you to claim £1k or more a year, what kind of real business doesn't claim expenses it is able to?

I think I worked mine out as up to £100pcm but dropped it to £50 since I don't want to measure my house, and want it to be well inside any valid calculation. But that's based on rent of £650pcm, many would be paying far more than that.

Apart that nobody seems to have read the link and special rules for personal service companies!
I give up

[northernladuk]

If you actually WFH there is nothing dodgy about this. The % of floor plan calculation could lead you to claim £1k or more a year, what kind of real business doesn't claim expenses it is able to?

I think I worked mine out as up to £100pcm but dropped it to £50 since I don't want to measure my house, and want it to be well inside any valid calculation. But that's based on rent of £650pcm, many would be paying far more than that.

For the extra £34 a month (Diff between your £50 and £4 a week) I would be tempted to take the safe option. These numbers are just peanuts. See what you are saying about dropping it lower than you think it should be though.

p.s. like the sig lol

[northernladuk]

Apart that nobody seems to have read the link and special rules for personal service companies!
I give up

I did, I did, I did...... I even posted a quote from it...

[Sally@InTouch]

I did, I did, I did...... I even posted a quote from it...

Well bless you my friend, we can always count on you!
Am astounded at times how you find links so quickly, tips appreciated

[northernladuk]

Well bless you my friend, we can always count on you!
Am astounded at times how you find links so quickly, tips appreciated

Didn't understand it like.... but read it.

[Sally@InTouch]

Didn't understand it like.... but read it.

I had to write an article about it last year when I was at planIT, There's dozens of pages that bored me for a couple of days!

[lithium147]

If I have to pay CGT on the portion of the house apportioned to the business (when sold), does that mean I can claim back the stamp duty I paid on that portion when I bought it?

[jamesbrown]

If you actually WFH there is nothing dodgy about this. The % of floor plan calculation could lead you to claim £1k or more a year, what kind of real business doesn't claim expenses it is able to?

I think I worked mine out as up to £100pcm but dropped it to £50 since I don't want to measure my house, and want it to be well inside any valid calculation. But that's based on rent of £650pcm, many would be paying far more than that.

I'm happy to be corrected on this, but my understanding is that claiming rent or mortgage is tricky unless you're claiming a fraction of that expense as wholly and exclusively for business, which raises other issues such as business rates and CGT. It's been a while since I looked at it though. By all means, claim more than £4 pw, if it's justified, but I can't see one getting to a figure much more than £4 pw on the basis of electricity etc. Personally, even £50 wouldn't motivate me to do it. ps. I couldn't see anything on that in your link, Sally, but I hope I didn't miss it

[Sally@InTouch]

I'm happy to be corrected on this, but my understanding is that claiming rent or mortgage is tricky unless you're claiming a fraction of that expense as wholly and exclusively for business, which raises other issues such as business rates and CGT. It's been a while since I looked at it though. By all means, claim more than £4 pw, if it's justified, but I can't see one getting to a figure much more than £4 pw on the basis of electricity etc. Personally, even £50 wouldn't motivate me to do it. ps. I couldn't see anything on that in your link, Sally, but I hope I didn't miss it

Taken from my article with credit to planIT Services Ltd

Home working expenses that you wholly, exclusively and necessarily incur in the performance of your duties and which exceed the HMRC allowable £4 per week may be allowable against corporation tax providing you can prove that the home is a workplace because the following conditions have been met:

The duties are substantive duties for the employment.
No suitable client premises are available at the client or the premises are closed.
The duties cannot be performed without the need for suitable home premises.
There has been no preference of choice made by the employee as to where the duties are performed.