How to work out expenses for mortgage?

[captainham]

I definitely appreciate my situation is a bit atypical, but which assumptions don't I meet? I got lost when they used a word like "substantive" which I never even knew was a word!

Is the issue with being a PSC, or is the issue whether you properly WFH rather than use it to do your invoices? I cannot even find the page which offers the floorspace % calculation now to try and figure this out!

My reading of the rules is that the issue lies with being a PSC.

If you're a PSC and you only do the books at home, then you can't claim anything more than the £4pw.

If the work you do at home is substantive, i.e. you're actually servicing the contract and doing "real work" at home, then you can start to claim for gas/elec and metered water as long you keep adequate records.

[d000hg]

So where does rent come into it - the link Sally gave (or one linked from it) says basically "rent is not claimable as you'd be paying it anyway" and this is as of 2006.

But I've seen and been told claiming a % of rent as well as bills IS allowable. So is it claimable if you're running a 'proper' business from home rather than a PSC?

[captainham]

So where does rent come into it - the link Sally gave (or one linked from it) says basically "rent is not claimable as you'd be paying it anyway" and this is as of 2006.

But I've seen and been told claiming a % of rent as well as bills IS allowable. So is it claimable if you're running a 'proper' business from home rather than a PSC?

From looking at some of lithium147's earlier links, such as this, then the answer is potentially yes.

However I am so far out of my depth here it's untrue, so at this point I'll be calling a taxi.

Edit: and you eventually arrive at this link: http://www.hmrc.gov.uk/manuals/bimmanual/BIM45745.htm

[captainham]

And even better luck with the examples:

BIM45750 - Specific deductions - interest: Examples

You can explain them to me if you can figure them out

[Sally@InTouch]

From looking at some of lithium147's earlier links, such as this, then the answer is potentially yes.

However I am so far out of my depth here it's untrue, so at this point I'll be calling a taxi.

Edit: and you eventually arrive at this link: BIM45745 - Specific deductions - interest: Mortgage interest relief - mixed use of premises

Wow, this thread is getting long! Until I found the link I posted which I just 'happened' upon by accident as HMRC website is chaotic, when I was researching for the article I wrote. I still thought that rent etc, a proportion of, was allowable (the old rules). I think HMRC sneaked the rules in without telling anyone. Many accountants are probably still not aware. Yet another HMRC dig at PSC's?

[captainham]

Good old MrAnchovy over on the Childminding forums seems to think it is still allowable (assuming you're not a PSC, I guess):

HMRC - claiming for your mortgage - Page 6

[Sally@InTouch]

Good old MrAnchovy over on the Childminding forums seems to think it is still allowable (assuming you're not a PSC, I guess):

HMRC - claiming for your mortgage - Page 6

...shall we jump on to his thread and start the same debate as on here

[captainham]

...shall we jump on to his thread and start the same debate as on here

I think we should, I reckon he'd love that!

He did have a good link to the examples here: Specific deductions: use of home: examples

But God knows if that's posted before in this thread, I'm certainly not going back to check cos I'm lazy.

[Sally@InTouch]

I think we should, I reckon he'd love that!

...I'm playing no part after the sleepless nights you've all given me!

[northernladuk]

...I'm playing no part after the sleepless nights you've all given me!

I will give you some more sleepless nights if you want