Tax Claims for Home Offices

[Andy Collins]

The Taxman advised me to include 10% of my rent to cover the use of the corner of the room I have for my office, 50% of landline costs, allowed me 10% for electric, £12/w for laundry costs, £20/w for wife answering the phone, sticking stamps etc. This was prior to taking on an accountant last year. Things Taxman denied my claims for: Polos, Rizlas, Guard dog.

[Quickthorn]

What threw me on this was the bloke on their "helpline", who told me rent wasn't allowed as an expense. I found something on the HMRC site which contradicts that, as it explains how you have to make some sort of sensible estimate, which takes into account how much space you use, and how long for. There isn't a fixed rate as such, but you can go by office floor area as a % of house area, and time spent as an office as a % of the week.

 

HMRC Business Income Manuals

 

 

My use of a bedroom every now and again doesn't amount to much, probably about £1-2 per week, but the garage where I keep and maintain my stuff is worth about £10/week, so 50% of that easily allows for the private use. I count 50% of the phone now, rather than all of it, just to be on the safe side. I hadn't thought of laundry costs..

 

It's a good thing not to be too greedy and claim for 100% for a room or garage, otherwise you might attract business rates.

 

Dean, if I was paying a lot of tax and the accountant hadn't picked up on these things, I'd be pretty unimpressed myself. If you have to tell him what he should be claiming, what's the point in having him?

[volvo]

You have to watch how much you claim for office space in private property.

If you dont the taxman might judge that you are due a percentage when you sell it.

[Tom11]

You have to watch how much you claim for office space in private property.

If you dont the taxman might judge that you are due a percentage when you sell it.

 

It also affects your home insurance. If you claim too much it becomes classed as business premises and you're into a different world of insurance.

[RPA]

The Taxman advised me to include 10% of my rent to cover the use of the corner of the room I have for my office, 50% of landline costs, allowed me 10% for electric, £12/w for laundry costs, £20/w for wife answering the phone, sticking stamps etc. This was prior to taking on an accountant last year. Things Taxman denied my claims for: Polos, Rizlas, Guard dog.

 

I was told you can actually claim for the dogs food if it is used as a guard dog

 

Also told all expenses plus £10-£12/week for the use of home.

[renewablejohn]

If you have a working farm then upto 25% of your farmhouse cost is normally accepted by HMRC as allowable expenses. Make sure the farm is over 5 Hectares and you can prove it is actively farmed.

[Andy Collins]

I was told by the tax office that you can only claim for a guard dog if you run a security company, in a very sarcastic tone.

[renewablejohn]

You can claim for a working sheepdog as it is a tool of the trade

[Andy Collins]

You can claim for a working sheepdog as it is a tool of the trade

If you're a shepherd or with livestock maybe, but I doubt it'd wash as an arb "tool of the trade"?

[renewablejohn]

Andy

 

What is your problem of course the dog is a tool of your trade how else are you supposed to find the truffles in the forest.