Self employed claiming house expenses but living with parents.

Sallyso

I live with my parents and have recently become self employed, working from home in a room. I would like to know what expenses I could claim. I am only registered on the council tax bill. All other bills are in my parents name. I give my parents a certain amount each month towards bills but just in cash, no receipts. How can I go about claiming these expenses if the bills are not in my name?

Many thanks.

COOLTRIKERCHICK

the only way you can claim certain expenses is if your parents invoice you with rent etc, but then this could open a whole can of worms for your parents, tax liability, business use/tax on the property etc

I shoould imagine someone will come along and give some more info on this

lincroft1710

Why are you "registered on the CT bill"? Only your parents have a CT liability, as they are considered to be the occupiers rather than you.

Jowo_2

No tax is payable under the Rent a Room scheme for the landlords of live in lodgers below £4250.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

There's a section on the HMRC website about expenses from operating premises, including working from home.

http://www.hmrc.gov.uk/incometax/relief-self-emp.htm

A brief intro here

http://www.smallbusiness.co.uk/channels/office-and-homeworking/q-and-a/23209/tax-deductible-expenses-for-homebased-businesses.thtml

http://www.commonwealthcontractors.com/Home_Based_Rules_-amp-_Business_Expenses.html

Premier_2

Jowo wrote: »

No tax is payable under the Rent a Room scheme for the landlords of live in lodgers below £4250.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

There's a section on the HMRC website about expenses from operating premises, including working from home.

http://www.hmrc.gov.uk/incometax/relief-self-emp.htm

A brief intro here

http://www.smallbusiness.co.uk/channels/office-and-homeworking/q-and-a/23209/tax-deductible-expenses-for-homebased-businesses.thtml

http://www.commonwealthcontractors.com/Home_Based_Rules_-amp-_Business_Expenses.html

Rent a Room does not apply to income from accommodation used as an office or for business other than by genuine lodgers (for example, students who are provided with study facilities in their lodgings, or lodgers who do some work in your home in the evenings or weekends).

http://www.hmrc.gov.uk/helpsheets/hs223.pdf

Jowo_2

My info about the rent a room scheme was based on an earlier poster who said that the OPs parents would open a can of worms with regard to tax due to charging her rent. To clarify, it is the parents that have the tax free threshold of £4250 from any rent received from a live in lodger (not the OP).

At best, I think the OP may be able to have a modest amount of CT, energy bills for the use of a room that is wholly an office. AFAIK, their rent for living there is irrelevant, its personal and not a business expense.

martindow

Jowo wrote: »

At best, I think the OP may be able to have a modest amount of CT, energy bills for the use of a room that is wholly an office.

As parents are footing the bills, surely the OP can't claim an 'expense' that they have not paid?

Jowo_2

martindow wrote: »

As parents are footing the bills, surely the OP can't claim an 'expense' that they have not paid?

No, the OP explicitly reported in her first post that she contributes toward the bills but lacks proof. She did not say her parents footed all the bills, just that the accounts with service providers were in their name. She is not asking to claim expenses for sums she has not spent. She is asking for guidance on what she can legitimately claim for operating her business from her contributions to household expenses.

"I give my parents a certain amount each month towards bills but just in cash, no receipts. How can I go about claiming these expenses if the bills are not in my name?"

Premier_2

Jowo wrote: »

No, the OP explicitly reported in her first post that she contributes toward the bills but lacks proof. She did not say her parents footed all the bills, just that the accounts with service providers were in their name. She is not asking to claim expenses for sums she has not spent. She is asking for guidance on what she can legitimately claim for operating her business from her contributions to household expenses.

"I give my parents a certain amount each month towards bills but just in cash, no receipts. How can I go about claiming these expenses if the bills are not in my name?"

As you correctly quote, the bills are not in the OP's name but in their parents name.

What the OP would need is an invoice addressed to them by their parents ... which may well lead to more complications all round.