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Use of home as office - le bog.

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    Use of home as office - le bog.

    Bit of a silly question I know. But I believe the formula to work out the "expense claim" to put through for "use of home as office" for the company space in a RENTED flat is something like.

    flat floorspace given over to the home office/ total flat floorspace .

    This fraction is then multiplied by the sum of

    The Rent + council tax + utlitiy bills to give the bit to bill to the company as an expense.

    Anyway, assuming this is right (it is right...?), then which bits of the flat count as floorspace. I think you ignore the hallways, but I have read somewhere that you also ignore the bathroom. Is this correct? It would be an extra 100 quid a month tax free if so (relatively big bathroom, small 1 bed flat rent approx 1200/month - yes london)

    Thanks much.

    #2
    I hope your landlord knows you are sub-letting!
    Your parents ruin the first half of your life and your kids ruin the second half

    Comment


      #3
      IANAA but when I did this my accountant suggested the following method of calculating:

      total cost of flat (rent + all bills) / by number of rooms - so you claim one rooms worth of the cost as the expense of your home office...

      I was sharing the rent/bills with my girlfriend of the time, so the calculation was based on my share of the rent/bills only

      HTH

      Comment


        #4
        Originally posted by Alexander Coe
        IANAA but when I did this my accountant suggested the following method of calculating:

        total cost of flat (rent + all bills) / by number of rooms - so you claim one rooms worth of the cost as the expense of your home office...

        I was sharing the rent/bills with my girlfriend of the time, so the calculation was based on my share of the rent/bills only

        HTH
        Ah, but my point is, is the bathroom counted as one of the rooms?

        Comment


          #5
          Originally posted by zeitghost
          Don't forget the broom cupboard...
          Its London. The broom cupboard has been converted into a compact and bijou studio and is rented out to six Poles.

          Comment


            #6
            Originally posted by pickle
            Ah, but my point is, is the bathroom counted as one of the rooms?
            Bathroom and hallways don't count. Not so sure about a kitchen, but I think not.

            I claimed for a couple of months, when I was genuinely doing work at home full time, and just went for rent + a bit / 3. Claiming for when you're normally on a client's site, or when you're on the bench are presumably a bit dubious?
            Will work inside IR35. Or for food.

            Comment


              #7
              Vectra
              Thanks for the info.

              Originally posted by VectraMan
              Claiming for when you're normally on a client's site, or when you're on the bench are presumably a bit dubious?
              Really? Where do you do your paperwork/accounts/research/job hunting? Its not on client site, and its something my company requires me to do each and every week. I have been claiming "use of home as office" in this regards for years. Works out at a few grand each year. Hope im not in for a nasty shock....

              Comment


                #8
                Originally posted by pickle
                Vectra
                Thanks for the info.



                Really? Where do you do your paperwork/accounts/research/job hunting? Its not on client site, and its something my company requires me to do each and every week. I have been claiming "use of home as office" in this regards for years. Works out at a few grand each year. Hope im not in for a nasty shock....
                Good thread!

                I may be wrong but I have a couple of queries:

                Do you show this as your income in your tax return as well?
                Do you file P11d etc to show this as benefit of some kind?

                Regards,
                Ganesh

                Comment


                  #9
                  Originally posted by VectraMan
                  Bathroom and hallways don't count. Not so sure about a kitchen, but I think not.
                  I asked my accountants and the info I got back was that a home usually has a kitchen and both a home and an office need a bathroom. To be deductible it should be a separate room exclusivley used for business purposes - i.e. my workspace in the corner of the living room didn't count.
                  So I set up my second bedroom as my office, and claim 20% (2 bed, bathr. kitchen & living rm = 5 rooms, 1 for business).

                  Comment


                    #10
                    Originally posted by MikeP
                    I asked my accountants and the info I got back was that a home usually has a kitchen and both a home and an office need a bathroom. To be deductible it should be a separate room exclusivley used for business purposes - i.e. my workspace in the corner of the living room didn't count.
                    So I set up my second bedroom as my office, and claim 20% (2 bed, bathr. kitchen & living rm = 5 rooms, 1 for business).
                    I would read that as the kitchen and bathroom make no difference, so you should be claiming 33%.
                    Will work inside IR35. Or for food.

                    Comment

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