How do I claim for use of home as a business expense?

Claiming for use of home as a business expense

You can claim for using your home for work purposes as an expense in your accounts, how you do it, well there are two main options

If you only use it occasionally for doing admin and a bit of marketing then one  best options is to claim on the same basis as if you were an employee working from home occasionally. HMRC allow a fixed amount depending on the hours you work and this does not need any evidence with bills etc

If you work more from home and have a room dedicated to business then you need to calculate your annual costs of your house that would include rent or mortgage interest, (not  the capital part of your mortgage repayment), gas electric and water bills and insurance . If you use a room exclusively for business and there is no personal enjoyment of the room then you would need to look at this room as a percentage of total home and this will give you the amount to claim per year.

It’s a question of looking this on an individual basis because everybody’s bills in the home are different

 

business expense, self employed, Tax, use of home

Share This Post

Disclaimer

All content and information on this website is for information purposes only, and it does not constitute accounting advice and does not establish any kind of accounting-client relationship by your use of this website. An accounting-client relationship with you is only formed after we have expressly entered into a written agreement with you that you have signed including our fee structure and other terms to represent you in a specific matter. Although we strive to provide accurate general information, the information presented here is not a substitute for any kind of professional advice, and you should not rely solely on this information. Always consult a professional in the area for your particular needs and circumstances prior to making any professional, legal, accounting and financial or tax related decisions.

Red Tulips Chartered Accountants do not take any responsibility for links used within this website for external internet sites. We will not accept any responsibility for any information contained on those external sites or viruses arising from any link to a third party website. 

Related Posts

Why choose a Chartered Accountant ?

5 Reasons to use a Chartered Accountant Before choosing your accountant Unless a member of the ICAEW ( Institute of Chartered Accountants) or qualified with another professional body, anyone can call themselves an accountant, even if they have no professional…
READ MORE

Essential Tax Tips for the Self-Employed

Here are some key tax tips to help you stay on top of your finances, save money, and avoid costly mistakes. Register with HMRC Early If you’re self-employed, you must register with HM Revenue and Customs (HMRC) for Self Assessment.…
READ MORE

How Tax Works For Self Assessment

How Tax Works For Self Assessment Accounts The tax system is self assessment and it works like this: Self Assessment means that each year you have to  produce accounts,  enter that information onto your tax return to 5 April  each…
READ MORE
keyboard_arrow_up