Reduced tax for home based business ?

usrjw1

Hi,

I'm a sole trader working from home.

My study is used 90% of the time for the business.

Does anyone know what amounts I can deduct from profit for electricty, gas and perhaps even floor space etc ?

Any help gratefully recieved as the IR web site is next to useless !

Thanks

ckerrd

Phone them up - they are very helpful.

You will be able to claim a proportion, depending on the total number of rooms in the house.
http://www.hmrc.gov.uk/manuals/eimanual/EIM32815.htm might be a starting point for you.

Pennywise

ckerrd wrote: »

Phone them up - they are very helpful.

You will be able to claim a proportion, depending on the total number of rooms in the house.
http://www.hmrc.gov.uk/manuals/eimanual/EIM32815.htm might be a starting point for you.

Actually, that link is for an employee as is it from the employment income manual, not self employed. For sole traders and partners, it is the business income manual that is relevant and is far more fruitful as to the amount that can be claimed - http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm

ckerrd

Pennywise wrote: »

Actually, that link is for an employee as is it from the employment income manual, not self employed. For sole traders and partners, it is the business income manual that is relevant and is far more fruitful as to the amount that can be claimed - http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm

Apologies - wrong link

jasmin10

Just as a guide, my account said to m to count how many rooms in my house that use electricity, lighting etc including hallway as one. When you get your electricity bill divide it into xx (the amount of rooms you have). He said it won't be 100% but it is a good guide.

Sam

barrymung

Lidl are doing "plug in energy monitors" for £7 in a couple of weeks time.

Buy one and check how much your business appliances actually use.