Use of home figures for tax return

pinkflamingo1965

Hi everyone,

I work from home full-time as a sole trader in a rented property. I use one of the 5 rooms in the house just for work. So I gather I can claim for 20% (one-fifth) of the rent etc. But I also use the other rooms from time to time (usually depending on the weather as my study is so cold this time of year!). So could I claim a higher percentage? And if so, is there an easy way of working out what this might be?

Any advice would be very much appreciated! I can't find anything on this on the internet.

Many thanks in advance

TheCyclingProgrammer

https://www.freeagent.com/guides/expenses/working-from-home-expenses-sole-traders/

00ec25

the link above from thecyclingprogrammer is only a different way of presenting the official HMRC info anyway

there is no rigid method you must use, the rules are it has to be a reasonable method, number of rooms as % or floorspace by % are the 2 obvious reasonable methods...
https://www.gov.uk/expenses-if-youre-self-employed

as you state the property is rented anyway you escape the trap that if you have a dedicated room used only for business it impacts your CGT when you sell. Obviously that is irrelevant in your case so you could claim 100% if you are prepared to justify that if you are ever unlucky enough to be selected for review by HMRC in the future.

spadoosh

00ec hits the nail on the head.

You self report to HMRC. Whilst there are guidelines there isnt anythin gset. Its based on judgement. So you could claim a higher percentage but i would base that decision on what you think your ability is of convincing and unknown tax inspector that your expense is allowable. If they agree, good. If they dont..... not good. Youll also invite a fine tooth comb but if theyre checking the % of house use youre probably already at that stage.

Personally i would say any use of the other rooms make use of the usual study room obsolete. So would be reluctant to suggest using your approach.

I think personally i would look at getting the heating sorted for that room and getting that allowable expense apportioned properly.

pinkflamingo1965

Thank you all very much for your replies and my sincere apologies for the length of time in acknowledging your thoughts - life suddenly got very hectic. I really appreciate your time and input - thank you!!