Discussion
Although I am PAYE I work from home as there is no space or equipment available for me at the company offices, and never has been.
I have just found out that I can claim towards the cost of running my home office, a percentage towards the electric, heating, business phone use etc. Is there an easy way to calculate how much electric etc that I can claim for. Running my PC, lights and printers etc? The phone is easy as I only use my mobile. Also can I claim for my outlay of capital expenditure for the PC and printer etc?
Has anyone else had any experience of this and can I back date it until I started with the company in 2004?
Sorry for all the qestions, the Tax office were helpful but not exactly falling over themselves.
TIA.
Mick
I have just found out that I can claim towards the cost of running my home office, a percentage towards the electric, heating, business phone use etc. Is there an easy way to calculate how much electric etc that I can claim for. Running my PC, lights and printers etc? The phone is easy as I only use my mobile. Also can I claim for my outlay of capital expenditure for the PC and printer etc?
Has anyone else had any experience of this and can I back date it until I started with the company in 2004?
Sorry for all the qestions, the Tax office were helpful but not exactly falling over themselves.
TIA.
Mick
Not sure about the backdating, but as I understand it if working from home is an expectation of the role and not just for your convenience, and the company don't pay for anything, then you can off-set the cost against tax.
When I did this I kept a log of when I was in the 'home-office' to show the hours and then apportioned the bills.
If you want to claim for more than heat and light (e.g. wear and tear, carpets, decorating) you will have to show the office was just that and not habitually used for other non-business things
Eric Mc is your expert here.
When I did this I kept a log of when I was in the 'home-office' to show the hours and then apportioned the bills.
If you want to claim for more than heat and light (e.g. wear and tear, carpets, decorating) you will have to show the office was just that and not habitually used for other non-business things
Eric Mc is your expert here.
Capital Gains Tax or Business Rates is very rarely an issue - providing the working from home does not require you to substantially alter the building itself (building a workshop, adopting the house for public access, building a surgery or clinic etc). If you just work from a converted bedroom or use the dining room or kitchen table, you will be OK. There is now a legal case which supports this. A few of years ago, a lady employee who worked a couple of days a week from home was assessed by her local council for Business Rates due to the fact that she was not just using the house for purely domestic purposes. The Council lost their case. The really ironic fact was that the lady was an employee of the Inland Revenue.
I have a number of clients who operate their businesses from home with no adverse effects. I've even had one client who runs and manages an engineering business from his house. His business activities were queried by his local council. Once the situation was explained to them, they were satisfied that Business Rates was not applicable.
Regarding tax relief claims for domestic costs - the accepted formula is this:
Add up your annual domestic running costs (gas, electricity, council tax, water charges and insurance) for the year to 5 April. Work out the number of habitable rooms in the house (excluding hallways, garages and loos but including bedroom). The figure usually works out at five or six for most people. Allocate one of these rooms as your "office" and divide the total domestic costs by 1/4, 1/5, 1/6 or whatever fraction is appropriate to arrive at the allowable cost.
I would certainly make a back claim for the years that you should have been able to make this claim. In the year the arrangement started, I would time-apportion the claim from the commencement date to the following 5 April.
I have a number of clients who operate their businesses from home with no adverse effects. I've even had one client who runs and manages an engineering business from his house. His business activities were queried by his local council. Once the situation was explained to them, they were satisfied that Business Rates was not applicable.
Regarding tax relief claims for domestic costs - the accepted formula is this:
Add up your annual domestic running costs (gas, electricity, council tax, water charges and insurance) for the year to 5 April. Work out the number of habitable rooms in the house (excluding hallways, garages and loos but including bedroom). The figure usually works out at five or six for most people. Allocate one of these rooms as your "office" and divide the total domestic costs by 1/4, 1/5, 1/6 or whatever fraction is appropriate to arrive at the allowable cost.
I would certainly make a back claim for the years that you should have been able to make this claim. In the year the arrangement started, I would time-apportion the claim from the commencement date to the following 5 April.
The Revenue are not keen on fixed amounts. They like to see how the figure was calculated i.e the reasoning behind the charge.
In reality, fixed or round sum amount claims are not that unusual, provided some exercise was carried out at some point in time which supports the amount claimed.
In reality, fixed or round sum amount claims are not that unusual, provided some exercise was carried out at some point in time which supports the amount claimed.
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