Fixed HMRC home allowance

MetaPhysical

You can claim some fixed allowances if you are a sole trader (part time sole trader selling a few bits and bobs to supplement my income  - I also work part time as well) and have to complete a tax return - which I do.  The amount depends on the number of hours you work at home but it is hardly a King's Ransom and amounts to an allowance of couple of hundred quid a year.  However, every little helps so they say.  I'd rather not get into complexity of electricity, computer, internet expenses etc and am happy with just this fixed allowance for my home and the 45p per mile for my car fixed expense.
Simplified expenses if you're self-employed: Working from home - GOV.UK (www.gov.uk)

This got me thinking.  Will the local authority then want to charge me business rates for claiming this pittance of an allowance if they get wind of the fact that I did a bit of work at home????  Is there any closed loop at HMRC backend that informs the local authority of this?

Bookworm105

working from home for income tax relief purposes and having a commercial business premises subject to NNDR rather than council tax are poles apart in terms of definition and assessment criteria

DullGreyGuy

This is running a business from home not just working from home from your employer. It has the potential to impact home insurance, mortgages, deeds, planning permission, capital gains tax, business rates etc etc. There are unverified online accounts of people claiming a room was exclusively for business purposes and then getting a stonking big CGT bill when selling etc because that room wasnt your personal residence so isn't excluded from CGT etc.

The one case I did see personally was someone who didnt declare they were storing product for their business in their spare room and after a major fire gutted the whole home the claim was declined because the insurer wouldn't have offered cover had they been told it was being used for storage and the insured had only declared clerical use

MetaPhysical

Wow, would the local authority really be that bothered about me being a sole trader selling a few nick-nacks and a profit of about £3000 to help me keep my head above water?  I'd be tempted to just not bother if it opens these cans of worms.  i don't have a formal premises as such, i just sell this stuff from home on top of my job as a teaching assistant.  I'd lose my home otherwise.
Do I need to pay business rates working from home? - Small Business UK

I am actually speaking in the voice of my fiancee here.  It's her that does this.  I don't live with her yet.

MetaPhysical

Answered my own question:
Business rates: Working at home - GOV.UK (www.gov.uk)

For what she does, no.