Reply to: Use of home as office - le bog.

[MikeP]

So do people claim for the home office when working elsewhere? I haven't, I figured it was a bit "dubious", but my spare room doesn't get used for anything else (as I don't have any friends )

Nothing dubious about that. Where else are you going to do all that nasty accounting and paperwork the HMRC asks for? It's where my puter lives and where I spend my time between contracts looking for work and doing ... uh, 'research'.
Nobody says you need to use it 8 hours a day, but you still need to have one *available*. Kinda like a pub with a beergarden - doesn't get used for much of the year, but still part of a going concern.

[VectraMan]

I'd correct the spelling in that last post, but I don't have that long ;-)

So do people claim for the home office when working elsewhere? I haven't, I figured it was a bit "dubious", but my spare room doesn't get used for anything else (as I don't have any friends )

[ftwig]

It sounds like you have answered your own question. Asking your accountent is the way to go as ultimity they should know (if you dont trust them get a new accountant) and it is there reputasion so if you want ot go against there advice you will have to perswade them.

I was putting 25% of my morgage as expenses a while ago when I was contracting - I think the IR have guidelines for this kind of thing.

[VectraMan]

Evil accountants, made me count my bathroom too. So now I can claim 25%
And I can still backdate it over the past years since I set up my office

I'll look forward to receiving my cut.

I didn't count the kitchen, so did 33%, although I was fairly conservative with the amount I claimed for and didn't work out all the bills, so I'm probably okay.

[pickle]

Yes, there is. Which is one of reasons I choose to rent the place I'm living in.

Indeed, me too. Rent a nice one bed flat in centre of town and share the burden with the tax man. I can always buy a place and rent it out if I ever get that burning desire to "get on the ladder".

Of course this will be less of an attractive route if I ever grow up, start a family and need a big house in the country. But thats a few years off yet I hope.

[MikeP]

Isn't there something about the "exclusively" that does something nasty to the Capital Gains thing when you sell?

Thus the reason for keeping the ironing board in the office?

Yes, there is. Which is one of reasons I choose to rent the place I'm living in.

[MikeP]

I would read that as the kitchen and bathroom make no difference, so you should be claiming 33%.

That's what I was hoping for. I checked at HMRC and it was a little vague. Had another look now that we're discussing it and I found you were partially right:
http://www.hmrc.gov.uk/manuals/senew/SE32825.htm

makes it quite clear:
Where a number of rooms in the employee's home are exclusively used for business and are not used for any other purpose at any time, an apportionment may be made of the expenses listed in SE32815 except for telephone expenses.

A deduction should be permitted for the same proportion of the expenses as the number of rooms used exclusively for business bears to the total number of rooms in the house, but excluding any bathrooms, lavatories or entrance halls.

Evil accountants, made me count my bathroom too. So now I can claim 25%
And I can still backdate it over the past years since I set up my office

[pickle]

To be deductible it should be a separate room exclusivley used for business purposes

This cant be true, what about all those live/work warehouse spaces that are only one big room for the whole flat. I think diving the floorspace up in the shared room should be fine. Ie take a photo of office set up up "in the corner" and attach it with a little sketch of the floorplan showing percentage of room used for office. File away in case the IR ever come knocking.

[VectraMan]

I asked my accountants and the info I got back was that a home usually has a kitchen and both a home and an office need a bathroom. To be deductible it should be a separate room exclusivley used for business purposes - i.e. my workspace in the corner of the living room didn't count.
So I set up my second bedroom as my office, and claim 20% (2 bed, bathr. kitchen & living rm = 5 rooms, 1 for business).

I would read that as the kitchen and bathroom make no difference, so you should be claiming 33%.

[MikeP]

Bathroom and hallways don't count. Not so sure about a kitchen, but I think not.

I asked my accountants and the info I got back was that a home usually has a kitchen and both a home and an office need a bathroom. To be deductible it should be a separate room exclusivley used for business purposes - i.e. my workspace in the corner of the living room didn't count.
So I set up my second bedroom as my office, and claim 20% (2 bed, bathr. kitchen & living rm = 5 rooms, 1 for business).

[Ganesh]

Vectra
Thanks for the info.



Really? Where do you do your paperwork/accounts/research/job hunting? Its not on client site, and its something my company requires me to do each and every week. I have been claiming "use of home as office" in this regards for years. Works out at a few grand each year. Hope im not in for a nasty shock....

Good thread!

I may be wrong but I have a couple of queries:

Do you show this as your income in your tax return as well?
Do you file P11d etc to show this as benefit of some kind?

Regards,
Ganesh

[pickle]

Vectra
Thanks for the info.

Claiming for when you're normally on a client's site, or when you're on the bench are presumably a bit dubious?

Really? Where do you do your paperwork/accounts/research/job hunting? Its not on client site, and its something my company requires me to do each and every week. I have been claiming "use of home as office" in this regards for years. Works out at a few grand each year. Hope im not in for a nasty shock....

[VectraMan]

Ah, but my point is, is the bathroom counted as one of the rooms?

Bathroom and hallways don't count. Not so sure about a kitchen, but I think not.

I claimed for a couple of months, when I was genuinely doing work at home full time, and just went for rent + a bit / 3. Claiming for when you're normally on a client's site, or when you're on the bench are presumably a bit dubious?

[pickle]

Don't forget the broom cupboard...

Its London. The broom cupboard has been converted into a compact and bijou studio and is rented out to six Poles.

[pickle]

IANAA but when I did this my accountant suggested the following method of calculating:

total cost of flat (rent + all bills) / by number of rooms - so you claim one rooms worth of the cost as the expense of your home office...

I was sharing the rent/bills with my girlfriend of the time, so the calculation was based on my share of the rent/bills only

HTH

Ah, but my point is, is the bathroom counted as one of the rooms?