Reply to: Use of office at home and business rates

[slackbloke]

http://www.hmrc.gov.uk/manuals/eimanual/EIM32700CT.htm

See section "Home: working from home and household expenses"

Its pretty clear - rent etc is not allowed for ltd co employees/directors, but is for self employed.

Fair play, I might as well become an accountant for all I know.................

[Pickle2]

You might have to start renting your then pickle

If someone has 4k to spend, they can have a go on it no problem.

[Ruprect]

http://www.hmrc.gov.uk/manuals/eimanual/EIM32700CT.htm

See section "Home: working from home and household expenses"

Its pretty clear - rent etc is not allowed for ltd co employees/directors, but is for self employed.

You might have to start renting your then pickle

[Pickle2]

http://www.hmrc.gov.uk/manuals/eimanual/EIM32700CT.htm

See section "Home: working from home and household expenses"

Its pretty clear - rent etc is not allowed for ltd co employees/directors, but is for self employed.

[Pickle2]

Indeed, it looks like the original URL has the wrong links in it now.

This is the BIM with examples :

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm

This applies to self employed, not people who are employed through a litd company. see the begining of the chapter

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47800.htm

BIM47800 - Specific deductions: use of home: contents
This chapter explains what expenses are allowable when someone who is self-employed uses part of their home for business purposes. It does not apply to the use of home by an employee or director - for this see EIM32760 onwards.

[slackbloke]

Mentions MIRAS - wasn't that abolished some time ago?

Indeed, it looks like the original URL has the wrong links in it now.

This is the BIM with examples :

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm

[Moscow Mule]

http://www.hmrc.gov.uk/manuals/bimmanual/BIM45745.htm

Mentions MIRAS - wasn't that abolished some time ago?

[slackbloke]

My accountant just told me last night I can no longer claim a proportion of my rent (15% for the spare bedroom that is the office) as an expense.

This also goes for council tax, mortgage intrest etc etc.

See:
http://www.hmrc.gov.uk/manuals/eimanual/EIM32815.htm

Anyone else been made aware of this recently? I have an expensive flat, so 15% is like 4k p/a. Im gutted.

Someone say it aint so!!

It ain't so. Your accountant doesn't know what he is talking about.

Ref : http://news.bbc.co.uk/1/hi/programme...ch/7459639.stm

http://www.hmrc.gov.uk/manuals/bimmanual/BIM45745.htm

[Lewis]

2 quid a week it is.

Nick, grow up.

It has been increased to £3.

http://www.accountingweb.co.uk/cgi-b...%20%25B%20%25Y

[Pickle2]

2 quid a week it is.

Nick, grow up.

[FiveTimes]

Whoa! I mean, that's almost £63 a year savings on tax over the year if you're on higher rate. Free champagne all round...

Is it really worth it?

Agreed, I can't be bothered for that amount.

[malvolio]

£3/week from April 6 2008 - but you must satisfy these criteria (make sure you follow the links, particularly the examples of how the regulations should be interpreted and applied).

Whoa! I mean, that's almost £63 a year savings on tax over the year if you're on higher rate. Free champagne all round...

Is it really worth it?

[NickFitz]

you can claim £2/week for use of home as office That's what I do.

£3/week from April 6 2008 - but you must satisfy these criteria (make sure you follow the links, particularly the examples of how the regulations should be interpreted and applied).

[NickFitz]

My accountant just told me last night I can no longer claim a proportion of my rent (15% for the spare bedroom that is the office) as an expense.

This also goes for council tax, mortgage intrest etc etc.

See:
http://www.hmrc.gov.uk/manuals/eimanual/EIM32815.htm

Anyone else been made aware of this recently? I have an expensive flat, so 15% is like 4k p/a. Im gutted.

Someone say it aint so!!

Well, the document you link to clearly states that council tax and rent haven't been deductible since the 2005-2006 tax year, so no, you can't claim them as expenses for 2006-2007 or later years. It is so.

Sorry if you expected the rest of us to subsidise your "expensive" flat forever - I suppose you could move somewhere cheaper, or maybe pay your household expenses out of your own pocket, rather than ours?

I very much doubt that whatever use you made of the spare bedroom for "business" purposes would actually justify your £4,000 p/a subsidy from the taxpayer (ten minutes on a spreadsheet once a week, by any chance?), which is probably why they've put a stop to such things. Find another goose if you want free golden eggs; and count yourself lucky they don't want to backdate the change.

ADDENDUM: this is where they tell you why you can no longer claim relief. If you can prove that you only incur the cost of renting your spare bedroom because you need it as an office - that is, you can demonstrate that you rented the spare bedroom wholly and exclusively to support the operation of your business, and would otherwise have no objection to the landlord filling it up with homeless people - then you should still have a case.

[contractor79]

you can claim £2/week for use of home as office That's what I do.