HMRC increase the Home Office allowance

[Nixon Williams]

HMRC are increasing the allowance contractors may claim for working at home, from £3 to £4 per week.

Contractors and freelancers can be reimbursed for additional household expenses – such as gas or electricity charges - incurred because you have to work from home, probably in order to your limited company administration work.

From 2012-13 onwards, for payments of up to £4.00 per week, you do not need to provide any records of the household expenses you are claiming. For amounts above £4.00 you need supporting evidence to show that the payment is no more than the additional household expenses you have incurred.

The guideline rate for 2008-09 to 2011-12 was £3.00 per week and for 2007-08 and earlier years it was £2.00 per week.



HM Revenue & Customs: Homeworking

[Clare@InTouch]

Thanks NW - I'd heard it was increasing but hadn't seen HMRC had actually updated their website yet. Useful link.

[northernladuk]

The guideline rate for 2008-09 to 2011-12 was £3.00 per week and for 2007-08 and earlier years it was £2.00 per week.

They are getting softer in their old age it seems!!

[BolshieBastard]

And who'd be foolish enough to give HMRC a legal right of entry into their office \ home all for 4 quid a week?

Thanks but I'll pass on this one.

[kingcook]

And who'd be foolish enough to give HMRC a legal right of entry into their office \ home all for 4 quid a week?

Where does it say HMRC have a legal right of entry to your office/home?

[BolshieBastard]

Where does it say HMRC have a legal right of entry to your office/home?

By using your home as an office, it gives HMRC a legal right of entry. Its in the legislation.

[jamesbrown]

By using your home as an office, it gives HMRC a legal right of entry. Its in the legislation.

True, for that part of the home used as the office. Keep your files in the toilet

[kingcook]

By using your home as an office, it gives HMRC a legal right of entry. Its in the legislation.

Well worth the tax relief on £3/wk (soon £4/wk) though you got to admit!

I guess if you answered the door wearing nothing but your pants, that might put them off. Actually.. this is HMRC we're taking about, forget that

[blinko]

Is this tax relief of £4 per week or is this an expense to be processed through payroll with no NI or PAYE tax to be invovled at £4 pw ?

[Waldorf]

I currently claim £3 per week through my expenses, so it doesn't hit paye/nic.