Self Assessment - Doing my own return questions

devonian20

Hello
I am a freelance graphic designer.  For years I have been doing my own tax returns as they are pretty simple but I have always had a friend who has looked over them for me and let me know where I may be able to claim back extra bits etc.  For example I am based at home (office in my garden), and I claim Business Use Primary Residence (BUPR).

I wanted to check the BUPR calculation hasnt changed.  It is currently claiming:

Total Figure which is: Interest on Mortgage + Gas and Electric + Water + Council Tax + Broadband

Divided by number of rooms in house x 100%

Times No of working days a week / 7.


Is that ok?! If anyone has any tips what else I may be able to claim for that would be awesome!
Thanks

[Deleted User]

Calculation seems in order. You work 52 weeks per year?

Is the room used exclusively for business purposes? 

devonian20

Thanks! Yes maybe a few a days off here and there - do you think I should make it 50 weeks to be safe? Yes exclusively for work

[Deleted User]

devonian20 said:

Thanks! Yes maybe a few a days off here and there - do you think I should make it 50 weeks to be safe? Yes exclusively for work

If it’s exclusively for work you may wish to read this. That part of the house exclusively for business could well not be eligible for private residence relief. 

Sometimes the tax tail can wag the dog and the eagerness to claim as much as possible can have unforeseen consequences. Is the amount that much in excess of £312 that makes it worthwhile?


https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64663

devonian20

Thanks again although I dont really understand the article - not really got a brain for this stuff!

I think you mean that by claiming the BUPR I could be affecting something else?  My BUPR calculation comes in roughly at 1.3k.  It is exclusively an office - it is external of the house as I say and has no other purpose.  If I am not working, I am not in here.

Thanks!

DullGreyGuy

devonian20 said:

Thanks again although I dont really understand the article - not really got a brain for this stuff!

I think you mean that by claiming the BUPR I could be affecting something else?  My BUPR calculation comes in roughly at 1.3k.  It is exclusively an office - it is external of the house as I say and has no other purpose.  If I am not working, I am not in here.

In simplest terms if you are claiming 1/10th of your expenses for your home as purely business then when you come to sell your property that 10% will not be considered part of your primary residency and so subject to capital gains tax if the value of your property has gone up. 

Sometimes different parts of the governments talk to each other, there have been cases where its deemed the garden office isn't incidental to the use of the property and so retrospective planning permission has been required due to the business use and its not always been granted meaning you must pay to remove the structure.