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WFH and expenses

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    #11
    Originally posted by BlueSharp View Post
    my accountant counts all the weeks and tells me to take it all out as an expense claim at the end of the year. Nice little bonus.
    you pay your accountant to count the weeks in a year?
    See You Next Tuesday

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      #12
      Originally posted by BillyPilgrim View Post
      Thanks for the replies, I will investigate further. My initial thinking (outside of the £6 a week), was expensing part of the rent, as suggested in this article.

      Working from home? Make sure you claim these expenses - FreeAgent

      Something along the lines of 20-30% of rent, so it's not too excessive for HMRC to start questioning it (total rent for the year = £10k, so £2-3k for rent expenses). I also saw something about drafting a rental agreement, if my rent lease allows for sub-letting.

      EDIT: Just seen the guide that northernladuk posted for bartman - this was interesting link (Contractors’ Questions: How much to claim for my home-based office?). I guess my future WFH is not my choice, as the site office will only request certain people to work onsite, and given the social distancing that is likely to remain even after lockdown, working onsite is unlikely to be available to me. Hmm tough one to ponder.
      If you’re not self employed then the FreeAgent article doesn’t apply. Read the HMRC link I posted. You can’t claim for a share of your rent as a director.

      There is a way around this involving a letting agreement with YourCo where you charge it rent, but you have to declare the rent in your tax return and offset it with appropriate expenses. This is far more complicated though.

      Just claim £6/week.

      Comment


        #13
        Originally posted by Lance View Post
        you pay your accountant to count the weeks in a year?
        I blame NLUK.

        Comment


          #14
          Originally posted by gables View Post
          !! 6 quid a week, is it really worth the effort
          What about £312 once a year? That's gotta be worth it for the 5 mins of "effort"?

          Comment


            #15
            Originally posted by pr1 View Post
            What about £312 once a year? That's gotta be worth it for the 5 mins of "effort"?
            Indeed. What exactly is this “effort”? Bank transfer (or credit directors loan account) once a year, explain transaction in FreeAgent as use of home, job done.

            Comment


              #16
              Originally posted by gables View Post
              !! 6 quid a week, is it really worth the effort
              What effort? Set a recurring expense in FreeAgent and you don't have to do anything else
              Originally posted by Stevie Wonder Boy
              I can't see any way to do it can you please advise?

              I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

              Comment


                #17
                Originally posted by SimonMac View Post
                What effort? Set a recurring expense in FreeAgent and you don't have to do anything else
                to be fair. It's taken me more than five minutes as I had to change the value this month as the allowance has gone up.


                So about 10 minutes effort, for the 5 years I've been using Free agent, so over £1,000 for 10 minutes.... If you just count the tax saving at 7.5% that's still not bad at over £75 for 10 minutes.
                See You Next Tuesday

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                  #18
                  Originally posted by Lance View Post
                  If you just count the tax saving at 7.5% that's still not bad at over £75 for 10 minutes.
                  If you're only saving 7.5% you're doing something wrong. Maybe the guy who asks his accountant to handle it is onto something.

                  Comment


                    #19
                    Originally posted by WordIsBond View Post
                    If you're only saving 7.5% you're doing something wrong. Maybe the guy who asks his accountant to handle it is onto something.
                    that was merely speculative assuming a tax saving of the basic dividend rate.
                    As I've already used that allowance it's more like £325....

                    I think it would take longer to email the accountant to ask him to make a recurring expense on FA than it would to do it myself./
                    And that it still less time than to write this....
                    See You Next Tuesday

                    Comment


                      #20
                      Originally posted by Lance View Post
                      that was merely speculative assuming a tax saving of the basic dividend rate.
                      As I've already used that allowance it's more like £325....

                      I think it would take longer to email the accountant to ask him to make a recurring expense on FA than it would to do it myself./
                      And that it still less time than to write this....
                      CT saving as well.

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