Expenses Claim for Garage and Room

Jane2132

Hi was wondering if anyone can advise with the following. Along side my full time job I have started a part time business. For this business I needed storage space so I have moved into a slightly larger flat than required that has a garage for the purpose of storing my goods for resale.

My question is that can I make a claim for the cost of the renting of the garage against my profit. I use about 1/10 of the storage space for my own use, i.e. store a few boxes of clutter, but 9/10 is for my sale goods.

I rent the flat so I guess CGT is not a problem for me.

I also rented a larger flat than I required so I could set up a part room as an office can I make a claim back for this. How would I work out how much is claimable, at a guess do I take the rent and divide this by the number of rooms in the flat and then divide by two as I only use half a room.

Has anyone else made a claim for this ????

I don't want to be greedy, just want to claim what I should. The cost of getting an accountant to sort this out for me would outweigh any profits I make so any advice greatly received. I want to ensure anything I claim back is completly and utterly justifiable 100% within the rules of the IR.

Thanks for your help once again.

Robert_Sterling_3

Are you a "sole trader".

vansboy

The revenue will allow 'reasonable' amounts, for any costs which are DIRECTLY linked to the business.

So long as you keep an accurate record & can identify the £$£$ you'll be OK.

VB

Jane2132

Yes operating as a sole trader

Plumpud_3

You need to contact your tax office to get an agreement with them in writing. Generally to claim 'use of room as office' it has to be used exclusively for business, otherwise you are just allowed a nominal amount for electricity etc.

If you get an agreement with them in writing, they cannot go back on it (unless you've misrepresented the facts or alter your working arrangements).

This can be very useful if you need to explain the situation at a later date (you can be chosen for a tax enquiry either randomly or for a reason, many years in the future). It also gives you a clear idea of what your tax situation is going to be before you make up your accounts.