Rent and home based business

Comp2

Can I put a percentage of my rent through my business as an expense? I work from home. It's impossible to make ends meet on our income including tax credits. The reason being our rent is high. If we were to find a cheaper rental property I would not be able to work from home as we use the extra room purely to run my business from.

If we moved to a smaller property I would have to rent a business premises.

DomRavioli

Comp2 wrote: »

Can I put a percentage of my rent through my business as an expense? I work from home. It's impossible to make ends meet on our income including tax credits. The reason being our rent is high. If we were to find a cheaper rental property I would not be able to work from home as we use the extra room purely to run my business from.

If we moved to a smaller property I would have to rent a business premises.

As far as I know, no. It isn't an exclusive business use property, so you can't claim anything.

Also, did you get permission from your landlord to run a business from home?

Comp2

Thanks for reply. Yes I have my landlords permission.

Bogalot

If you can't manage on your self employed incomes can (at least) one of you not find employed work?

Comp2

No unfortunately we can't.

Cakeguts

Comp2 wrote: »

Can I put a percentage of my rent through my business as an expense? I work from home. It's impossible to make ends meet on our income including tax credits. The reason being our rent is high. If we were to find a cheaper rental property I would not be able to work from home as we use the extra room purely to run my business from.

If we moved to a smaller property I would have to rent a business premises.

Find a cheaper rental property in a cheaper area of the country?

Comp2

Gosh, why didn't I think of that? Oh I know. It costs money. Which we don't have.

Owain_Moneysaver

Comp2 wrote: »

we use the extra room purely to run my business from.

You may be able to apportion part of the rent (and heat/light) as a business expense but you may also be liable for commercial rates on that part of the property if it's exclusively for business use.

Your accountants will advise what is deductable against income for income tax purposes. However, that doesn't mean it will be ignored for benefits or tax credit purposes.

Darksparkle

Why not just look it up yourself rather than sarcastic replies to people offering advice.

https://www.gov.uk/expenses-if-youre-self-employed/overview

Comp2

I have looked it up and I am still not sure of the answer. :-/

I don't see how it is helpful to suggest that people with no money uproot from their home town and family to a cheaper part of the country. It would costs hundreds of not thousands of pounds and we wouldn't have work so would be in an even worse position!

Darksparkle

Comp2 wrote: »

I have looked it up and I am still not sure of the answer. :-/

!

Did you read the link?