Self employed: claiming for rent, rates, power and insurance

Hi all,

I've been self-employed since 2007 and had an accountant for the first few years.

I've been going through the old tax returns he did for me and noticed that he tended to put down £156 for my rent and rates. However on the last tax return he did for me he put down £704!

Does anyone know if there's an easy way to calculate this, or should I be using my accountant's figures, as I have been doing? I'm a sole trader whose business premises are (for paperwork purposes) my home. My everyday jobs are outside of my home although I do prep work from home, which involves using a computer.

Many thanks in advance if anyone is able to offer advice.

Comments

  • cashewnut
    cashewnut Posts: 362
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    Thanks for your reply :)

    I'm in England. Yes, I agree the £704 is a strange and large figure. At the time I was renting (which was expensive, unsurprisingly) in London, so not sure if that makes a difference.

    I've had a quick look at that website and it looks really useful, thank you.
  • cashewnut
    cashewnut Posts: 362
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    Also, I didn't have a scooby what "rates" really meant. I assumed yet just another thing about tax returns that addles my brain!
  • tastyhog
    tastyhog Posts: 846
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    cashewnut wrote: »
    Also, I didn't have a scooby what "rates" really meant. I assumed yet just another thing about tax returns that addles my brain!

    it'll be business rates, but as you dont tend to claim them on a private dwelling where you're just using part of the house to work on the business, say an office, they will incorporate a portion of council tax and the like to reduce your tax liability, in the same way as part of your landline / bradband rental can also be used as a business expense if you dont have seperate business lines for this.
  • 00ec25
    00ec25 Posts: 9,123
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    edited 20 April 2018 at 8:04PM
    tastyhog wrote: »
    it'll be business rates, but as you dont tend to claim them on a private dwelling where you're just using part of the house to work on the business, say an office, they will incorporate a portion of council tax and the like to reduce your tax liability, in the same way as part of your landline / bradband rental can also be used as a business expense if you dont have seperate business lines for this.
    yes, correct, see examples here:
    https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim47820

    https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim47825

    https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim75010

    note carefully, the above applies to the SELF employed. It does not apply to those who are directors/employees of their own limited companies where the employee uses their own home for the business of the Ltd Co.

    "rates" is what council tax used to be called before we had poll tax and council tax applied to residential property.
    It is the word still used for commercial property to this day as such property pays NNDR - National Non Domestic Rates

    accountants, being slow to change, still use the catch all category: rent & rates
  • cashewnut
    cashewnut Posts: 362
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    ^ all the above is really helpful and informative, thank you both.
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