Using home as an office.

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    Using home as an office.

    Does anyone claim this on their self assessment.

    Was thinking of doing this via the simple calculation.

    If anyone has an advanced calculation formula or if they think the simple method is better I'd appreciate your advice.

    #2
    Unless the benefit is massive I'd not do this.
    It has rather unpleasant CGT possibilities (because your home ceases to be "just" a residence).
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      I was just thinking of doing the simple method of £10 per month.

      I manage my own properties and don't have an agent.

      This shouldn't attract CGT should it?

      Comment


        #4
        I have one room used for my office but also has the added benefit of providing overnight accommodation when friends stay over, I levy £500 and include this on my tax return , this amount has not changed and reflect all legitimate costs of heating , electricity etc. My accountant advised similarly to what jpkeates has stated , you can claim a higher amount to reflect what you would pay in having your business run from a separate unit but that would place me in areas which would create their own tax problems.
        Whilst previously working for a lender and where I used the room for working in the evenings and one full day, we were advised that HMRC permitted £250 as legitimate expenses.

        Comment


          #5
          Don't forget that if you are running a business from home you may also become liable to pay Business Rates, and you may need to change your insurance cover, inform your mortgage lender if you have one, etc. etc.
          https://www.gov.uk/run-business-from-home

          If/once you start to claim it on your self-assessment it's not just HMRC who may get interested.

          Comment


            #6
            You may need to pay Capital Gains Tax on the part of your property you used for your business if you sell your home.

            Comment


              #7
              I claim £104 per year... HMRC's advice - via BIMs - was that this is fine, "no enquiries are needed". Simple and saves me a little bit.

              Comment


                #8
                Thanks. What's BIMs?

                Comment


                  #9
                  HMRC Business Income Manual.

                  Comment


                    #10
                    http://taxaid.org.uk/guides/informat...home-as-office
                    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                    Comment


                      #11
                      Note: If you use a room in a home you own, ‘exclusively’ for work, this could reduce the Capital Gains Tax private residence exemption when the property is sold. This is because any part of the property exclusively used for business will not qualify for Capital Gains Tax private residence relief. This problem may be avoided by ensuring there is some domestic use of the study (e.g. keeping a second TV in the study, and using it from time to time for personally).
                      From the linked page...
                      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                      Comment


                        #12

                        The recommended amount to claim quoted in the Taxaid guide is £10 per month if you spend 25-50 hours working at home.

                        Does any property owner with 1 or 2 units spend that much time working at home once the property has been let out. ?

                        Comment

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