Working from home - Tax relief

jimbugalee

Not sure if this is the right bit of the forum - so many sections!

I am currently living at home but looking to move out in 2009. Not sure whether to rent or buy but that's another subject....

I wondered if you could claim tax relief from working at home? I am an employee of a company rather than self exmployed. I thought it may be complicated but it looks like it might be as simple as this:

• Flat rate deduction of £3.00 per week (from 2008-09) for each week worked at home. This doesn't include the cost of business telephone calls.

Maybe the following is for self employed people?

• The extra cost of gas and electricity to heat and light your work area
• Business telephone calls
• Use of a car – a percentage of tax relief is available based upon how much business use is incurred. In addition, a percentage of the 20% capital allowances may also available on your vehicle based upon the percentage of business use.
• You may also be entitled to a deduction for items used for your business – either a capital allowance deduction for computer equipment, or a straight forward deduction for some items such as stationery and paper.

Someone mentioned that if I started claiming for working at home and was the owner of a house it might be re-classified as a business property (in part) and there might be some problems with capital gains tax?

Sorry this is a bit waffly - lots of info!
Thanks in advance for any help/advice.

jimbugalee

Oooh just been reading some more (sorry, second post!)

I think you can have £3 a week or more if you prove you spend more. I would spend about £30 a week in phone calls (although these get paid for by company).

fengirl_2

Yes, you can claim £3 pw for the use of a room at home, but only if your contract requires you to do so. If your phone calls are paid by your employer, then you cannot claim against tax.
CGT is highly unlikely - I never saw it in 26 yrs as an Inspector.

jimbugalee

Does this mean I have to start filling in a tax return?

For £3 a week it's not really worth it I would've thought?!

fengirl_2

No, you dont fill out a tax return. You just write to your tax office saying you started this job on xxx and want to claim the £3pw from then.

disney_cjd

Can I ask, is this £3 only if you work full time at home?

What about if you work two or three days a week at home?

Thanks

jimbugalee

Just found these 2 threads which are useful:

http://forums.moneysavingexpert.com/showthread.html?t=711931&highlight=home+office

http://forums.moneysavingexpert.com/showthread.html?p=14194101&highlight=home+office#post14194101