Expenses Claim- using shed as workshop

[S.Fairbairn]

Hi all,

 

I'm currently battling my way through my accounts and have found various methods for claiming back part of the expense of using your garage as a workshop.

 

Does anyone know of a reasonable set amount that can be used or does it go on floor space etc?

 

I know if you push it too far you can become liable for business rates on that part of your property, don't want that!

 

Any help greatly recieved,

 

Scott

[farmer rod]

Hi all,

 

you can become liable for business rates on that part of your property, don't want that!

 

 

Scott

 

or capital gains tax if you move house

[woodyguy]

its about apportioning the expenses incurred running the workshop according to what percentage is garage vs workshop. So if it is heated and 50% floor area is workshop then you could allow 50% of the heating bill. Similarly for repair or decoration to the garage. Is this what you were thinking of?

[likeitorlumpit]

Use of room in the house for an office used to be around £500- which is a bit low really compared to renting. Never heard of using a shed claim but why not. The rule of thumb I use is don't get too greedy and then you are OK.

[Mike Dempsey]

I used to work from home in a large shed in the garden. When I got my heating upgraded I got a radiator installed which is absolutely brilliant. As I have also got leccy in as well I claim for gas and leccy. If I remember correctly it is about 20% of both bills I claim for. I also claim for any maintenance for the shed which needs done.

If you use part of your house ie room or garage I think it may have to be exclusively for that purpose. You can claim part of your mortgage as an expense for the business if you use it exclusively for your business. The down side of that though is you may be liable for business rates and paying partial capital gains tax.

I also claim for half of my internet connection and landline and all my computer expenses. Years ago I did a marketing course and there was an accountant on it who gave me a big list of things I could offset against the business. My eyes nearly popped as he kept adding things to the list. Best bit was though it was a freeby so, not all financial people are wa**ers, just most of them!

[S.Fairbairn]

Hi all,

 

Thanks to everyone that has posted,

 

I've read that you can claim £3 per week for using your home as a base for your business without incuring business rates.

 

I might see if I can book a session with an accountant to get the full picture.

 

Cheers

 

Scott

[Quickthorn]

Here is the guidance from HMRC

 

Use of home

 

From my reading of it, there is no fixed figure you can claim. You work out the cost of the space and the fraction of that cost you can attribute to business use. They've got some examples there.

 

If you're using part of your property exclusively for business (especially if you've adapted it for that), there is the danger that the local authority will want business rates. I don't know if that's ever happened, though.

[woodyguy]

As I said in my post, its the proportion that counts. There is no absolute amount and my wife has claimed several thousand pounds on the house this year, self employed from home (we had some new windows and decorating). As others said though, you just need to keep it sensible or you will attract the interest of the local authority and business rates.