P87 Computing work at home

ronson49

What can I claim for?

I have a extra bedroom to use as an office and I have worked at home each day for almost 3 years.


I do not have to make calls, and my computer is provided, but i need to heat and light my work area 5-6 days a week and pay for the highest internet access (do the video work i do).


It says I can claim back £3 but that would not pay half of my internet bill.

So I do not know how to calculate a figure.

1) Can i include the fact I need to rent a larger property for a work room than the 1 bed flat i used before working at this employers?

2) How can I calculate the energy costs of heating and lighting a room with a powerful workstation, and 3 monitors?

3) Is there any other details I should claim for?


Thanks for reading this, you must have the patience of a saint!

(I searched but it was mostly about fuel).

Murdina

I take it you are employed then.
The rules for claiming tax deductions as an employee are VERY narrow.
You must check first off you can claim anything at all - have a read here:
http://www.hmrc.gov.uk/manuals/eimanual/EIM32760.htm
If you are sure you meet this criteria then read on to see if you can claim anything else.
I would be inclined to say claiming anything other than extra heating/electricity/internet is not likely to be accepted.
This page tells you about household expenses:
http://www.hmrc.gov.uk/manuals/eimanual/EIM32815.htm

The reason why it is so narrow is because the legal interpretation of the wording of the rules on expenses is that everyone or anyone who carried out your particular job would have to incur that expense. So if there is anything about your personal situation - rather than the job - which dictates the expense - you can pretty much rule it out.

ronson49

One part of the website says I cannot claim counciltax, or rent.

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm

In the list of examples, they do......


I decided to claim

66% of my monthly broadband cost
18% of my energy bill (a rough stab at 9 hours dedicated use per day)

Is this reasonable if I can calculate the figure?

BoGoF

The BIM manual is for self-employed people not employees.

Have a look at this re broadband - http://www.hmrc.gov.uk/manuals/eimanual/EIM32940.htm

Basically HMRC will seek to disallow the claim as it would fail the "wholly and exclusively" part of the legislation.

18% is likely to be challenged. You do not work 52 weeks of the year so to take 18% of your total bills is unrealistic.

Karmacat

I'm wondering myself about how to claim for my computer and phone, what part of the form to put them in ... anyone got any ideas?

ronson49

Did you have any luck KarmaCat?

Bogof says what I wrote is not acceptable but gives no alternative figures.

So I have been told with a link to HMRC that you cannot claim much unless it is specifically for my job.

In 3/5 of the examples on the HMRC screen, people include council tax and rent based on house size, and time used for work.

And by using these figures, Bogof said it was unacceptable.

So basically, does anyone actually know, or is everyone just really, underneath, as clueless as I am?

corky2

OK are you an employee or self employed?

If you are an employee, have you agreed with your employer that you will work at home or is this your choice?

Assuming you are an employee is your employer contributing anything towards your costs?

When you say "what part of the "form" do you put the claim on" what form are you referring to?

With some details I should be able to help

Mikeyorks

You're an employee ...... not self employed. So look at the links on post #2, which fully cover all you need to know.

As Murdina correctly said

The rules for claiming tax deductions as an employee are VERY narrow

..... in other words - very restricted as to what you can claim. Talk to your employer in the first instance about suitable reimbursement? As you're saving them a fair bit.

Karmacat

ronson49 wrote: »

Did you have any luck KarmaCat?

I found the capital allowances part of the form and I've put 50% of the computer and 80% of the phone in there. Thank you!

So I have been told with a link to HMRC that you cannot claim much unless it is specifically for my job.

In 3/5 of the examples on the HMRC screen, people include council tax and rent based on house size, and time used for work.

So basically, does anyone actually know, or is everyone just really, underneath, as clueless as I am?

I'm self employed, and have been for a long time - but I'm only doing my own form this year for the first time, couldn't really afford an accountant this year. I've never included council tax, but my claim for heat and phone is substantial, as I see clients at home. Nor do I claim for water rates or toilet paper, even though 60% of work-visitors use the toilet!

corky2 wrote: »

OK are you an employee or self employed?

If you are an employee, have you agreed with your employer that you will work at home or is this your choice?

Assuming you are an employee is your employer contributing anything towards your costs?

When you say "what part of the "form" do you put the claim on" what form are you referring to?

With some details I should be able to help

Thanks for this Corky - as I say, I'm fully self employed, the form I was referring to was the self assessment form - I think I've sorted that particular issue, ta muchly.

Now, I'm looking at the interest for a loan I took out as part of the deposit for an investment property -and since that property is abroad, whether my Santander shares (pitiful amount! but mine own :rotfl:) should therefore go in the foreign section... life, eh? :j