Working from Home - Allowable deductions?

robindunne1

Can anyone tell me if there any flat rates that are allwable deductions for working from home for gas, electrcity, usage of a computer etc...?

godsakes

robindunne1 wrote:

Can anyone tell me if there any flat rates that are allwable deductions for working from home for gas, electrcity, usage of a computer etc...?

my accountant tends to allow 1/5 of bills to be deducted against my profits

bootman

If you are employed by someone the only flat rate is £2 a week. If you want to claim more you have to be able to demonstraight to the tax office your extra expense.

skim

I just called the tax office on this exact topic & they say that if I use my own equipment etc then I should be compensated for it.

However, they can not give any advice or details or how I should be compensated???

I do software support from home & I have to pay tax on my phone £507 per year & all replacement parts etc that I install on customers PCs - all because my employer puts it all on my P11D:mad:

cash99

skim wrote:

I do software support from home & I have to pay tax on my phone £507 per year & all replacement parts etc that I install on customers PCs - all because my employer puts it all on my P11D:mad:

Unless your employer has a dispensation then it has to report all expenses paid to you. It does not automatically follow that all expenses paid to you are taxable.

Any re-imbursed expenses which were incurred wholly, necesarily and exclusively in the performance of your employment are tax deductible.

Replacement parts fall into this category, as well as work related phone calls, but not line rental, unless it is a secondary phone line in your employers name.

To get the tax deduction you need to make a claim.

Explain the situation to the tax office and they should be able to sort it out.

skim

cash99 wrote:

Unless your employer has a dispensation then it has to report all expenses paid to you. It does not automatically follow that all expenses paid to you are taxable.

Any re-imbursed expenses which were incurred wholly, necesarily and exclusively in the performance of your employment are tax deductible.

Replacement parts fall into this category, as well as work related phone calls, but not line rental, unless it is a secondary phone line in your employers name.

To get the tax deduction you need to make a claim.

Explain the situation to the tax office and they should be able to sort it out.

I tried but they said my employer had to re-issue a P11 D without the expenses that related to paying for parts for customers benefit.

cash99

My P11D last year had similiar expenses reported, and so I included them as both income and expeneses on my tax return. Net effect no tax liability

An employer cannot exclude items paid to employees without holding a dispensation, otherwise they can be fined for filing incorrect P11Ds.

I suggest you try someone else at the tax office.

Louise1521

How do you claim the flat rate of £2 per week?

Hoddie_2

I tried but they said my employer had to re-issue a P11 D without the expenses that related to paying for parts for customers benefit.

Send in a P87 claim for the same amounts.

How do you claim the flat rate of £2 per week?

Again, a P87 for each tax year in question. The form at the link is for 05/06, if you need to claim for previous years, just cross out '2006' at the top right and replace it with the correct year.