Live with parents, run business, can I claim use of home in tax return?

Legacy_user

I live with my parents and don't pay any bills (lucky I know). We live in a 4 bed house. I use 1 room + garage for storage only, plus my bedroom (not an office but where I spend most of my hours doing my business work) (the garage and other room are basically packed tight to the ceiling with stock). Can I claim anything as "use of home" in my tax return even though I don't pay anything? I'm thinking no..

Thanks!

phill99

So you want to claim tax relief on a cost you don't actually pay or notionally pay? That seems legit!

gb12345

berbastrike wrote: »

I use 1 room + garage for storage only, plus my bedroom (not an office but where I spend most of my hours doing my business work) (the garage and other room are basically packed tight to the ceiling with stock).

All sounds a bit Only Fools & Horses to me.

Have your parents notified the council about the change of use of part of their house to a commercial use?

Their insurance company might be interested as well - your stock won't be covered if anything happens and they may see the property as a higher risk.

CKhalvashi

gb12345 wrote: »

All sounds a bit Only Fools & Horses to me.

Have your parents notified the council about the change of use of part of their house to a commercial use?

Their insurance company might be interested as well - your stock won't be covered if anything happens and they may see the property as a higher risk.

If the answer to both the above is no, then definitely not!

CK

somethingcorporate

No.

I suggest you get your parents on the phone to the council and their insurance companies otherwise you may find yourself on a sticky wicket

lincroft1710

You could end up paying non domestic rates on the garage and storage room as they are wholly in commercial usage.

bris

If I was you I wouldn't draw any attention to myself by trying to add non existent storage costs to your returns.

I wouldn't be surprised if they even classed it as fraud for claiming back something you are not paying for in the first place.

System

thanks everyone! will contact the council to see if I have to pay rates, hopefully not, running a business is bloody expensive

martindow

berbastrike wrote: »

thanks everyone! will contact the council to see if I have to pay rates, hopefully not, running a business is bloody expensive

Don't rush into this. It's your parents house and I hope you are going to discuss this with them first.

Many people run small businesses from redsidential premises. Providing there are not strings of customers or lots of deliveries to annoy neighbours it may be best to stay below the radar.

somethingcorporate

martindow wrote: »

Don't rush into this. It's your parents house and I hope you are going to discuss this with them first.

Many people run small businesses from redsidential premises. Providing there are not strings of customers or lots of deliveries to annoy neighbours it may be best to stay below the radar.

Sorry but advocating this attitude is stupid.

If things do go wrong then the property owners could face penalties and the OPs stock may not be insured!

martindow

somethingcorporate wrote: »

Sorry but advocating this attitude is stupid.

If things do go wrong then the property owners could face penalties and the OPs stock may not be insured!

Maybe I overstated this. It was more a reaction to the suggestion of going to the local authority which I think needs some thought before possibly opening a can of worms for the OP and their parents.

It is certainly possible to insure stock in a private house - AXA for instance have a working at home policy with this cover. My understanding is that it is not a planning change of use if rooms in the house have both a business and residential use - is this correct?

If so it should not be a concern for the LA. Perhaps insurance is more of an issue.