How to work out expenses for mortgage?

[lithium147]

I have been looking into what % of my mortgage I can claim as an expense for my LTD.

I read this:
BIM45745 - Specific deductions - interest: Mortgage interest relief - mixed use of premises

And this:
BIM45750 - Specific deductions - interest: Examples

Is it true that I can only expense a % of the first £30,000 of my mortgage interest (only) payments?
This seems quite low, and would work out to be much less than what I was expensing when renting.

[northernladuk]

The devil is in the details... How much time do you work from home?

If you are talking an office space but you tend to work on client site then I believe it is £4 a week.
http://www.castlemaine.co.uk/index.p...home-allowance

If you work full time from home then your accountant can help.

[northernladuk]

Check this thread as well

http://forums.contractoruk.com/accou...allowance.html

[lithium147]

...

Am working freelance at the moment, so mostly at home.
Dedicated home office area of flat is about 20% of flat foot print.

[Sally@InTouch]

There are very specific rules for service companies and home workers. Take a read of this guide
Other expenses: home: working from home: service companies

Personally, I'd stick with the £4 per week as NLUK mentioned.

[lithium147]

My Accountant previously advised me that I could claim a reasonable percentage of my rent. So I assume that also applies to mortgage. Just need to work out the percentage, and how much of the mortgage can be considered.

[northernladuk]

My Accountant previously advised me that I could claim a reasonable percentage of my rent. So I assume that also applies to mortgage. Just need to work out the percentage, and how much of the mortgage interest can be considered.

FTFY...

You also have to work out if the actual savings are worth the risk. Claiming a percentage of your mortgage interest to save a percentage of tax doesn't always come to a lot.

[jamesbrown]

There are very specific rules for service companies and home workers. Take a read of this guide
Other expenses: home: working from home: service companies

Personally, I'd stick with the £4 per week as NLUK mentioned.

Take this advice. For the miniscule amount you'd be saving, it isn't worth providing HMRC with a reason to question your sums (as well as the potential issues with business rates and capital gains if you're claiming a work area as wholly and exclusively).

[jamesbrown]

Also, my understand is that rent/mortgage cannot be claimed, as they would be paid regardless, unlike electric etc.

[Sally@InTouch]

My Accountant previously advised me that I could claim a reasonable percentage of my rent. So I assume that also applies to mortgage. Just need to work out the percentage, and how much of the mortgage can be considered.

The link I provided above no longer covers this, check out the "substantive duty" bit. Just extra gas and electric. Some accountants may advise claiming, if so there could be a capital gains tax issue if you sold the house.