Re: Use of home.

On 27 Mar, 16:18, Alan Ferris <fer...@xxxxxxxxxxxxxx> wrote:
On 27 Mar 2007 00:43:21 -0700, "Troy Steadman"





<troystead...@xxxxxxxxxxx> wrote:
On 26 Mar, 18:25, Alan Ferris <fer...@xxxxxxxxxxxxxx> wrote:
On 26 Mar 2007 00:59:06 -0700, "Troy Steadman"

<troystead...@xxxxxxxxxxx> wrote:
On 26 Mar, 07:40, Alan Ferris <fer...@xxxxxxxxxxxxxx> wrote:
On 25 Mar 2007 23:26:26 -0700, "Troy Steadman"

<troystead...@xxxxxxxxxxx> wrote:
On 26 Mar, 06:14, Peter Saxton <p...@xxxxxxxxxxxxxxxxx> wrote:
On Sun, 25 Mar 2007 17:29:04 +0100, "JABAccts" <J...@xxxxxxxxxx> wrote:
Having lost my PAYE employmernt after nearly 25 years service I started self
employment as a web designer. Not ideal, but until something better becomes
an option it will at least give me some employment.
I willl be working at home, full time in one room that has been
proffesionally converted as an office. It has only office furnture and
equiptment and will only be used as on office.
I have looked on various sites regarding claiming "home " expences, and have
calculated I should use 8 roons in my calculations : - 3 bedrooms, 1
kitchen, 1 utility room, 2 reception rooms and my office.
I have separate phone and internet connections into the office.
My wife works and prior to my becoming self emplyed the house was empty all
day and the heating was off.
Now I work at home, the heating bill has increased dramatically, as the
whole house is being heated.
When I calculate the Office use for gas / electric I assume I use 1/8th.
However. would it not be reasoable to suggest a higher propartion bearing in
mind the substantially increased bill?
Sorry if this seems a little petty, but the business has not really taken
off yet and profit is low.

You shouldn't include the kitchen in your calculations.

It makes sense to judge the heating based on the increase.

I would use the office for some non-business activity to avoid CGT.

But then you can't do the apportionment: Following Furkwet's link we
see the situation is the same as it always was:

"If part of the home is set aside solely for business use for a
specific period then a part of these costs is allowable. It will
normally be appropriate to apportion these expenses by area and time".

BIM47800 - Specific deductions: use of home: contents
http://www.hmrc.gov.uk/manuals/bimmanual/BIM47800.htm

Obviously you cannot read, it clearly states you can apportion, by area and time.....

Provided you don't exceed £13 a week. Read through the Examples -
Gordon the Architect amends his apportionment to what he can get away
with - £13 is all he can get away with.

ROFL! You take an example to be a set figure....DOH!

"The following examples are a guide only and intended to demonstrate
the principles to be applied. The examples are not intended to be
prescriptive; each case will be dependant on the facts."

But you ignore that and decide the £13 per week is prescriptive. Damn
I am glad you do not advise me.

Well be that as it may, I reckon Simon will be along to kick some ***
on this subject, as he usually does. I think you and Peter are
misinforming the OP. The truth is:

What misinformation have I given?

1) He can only claim what is reasonable.

True

2) What is reasonable depends on his accounts as much as on his
property.

True

3) Whether it is £2, or £4, or £6, pw is for the OP to judge.

Indeed.

Woe betide anybody if it is much abover £12.

Why? It may be reasonable dependant upon the circumstances and costs
involved.

For example, what if he has 2 separate rooms built above a garage, 1
used by him and 1 used by his secretary. They have to heat the
premises by means of electric as no gas is supplied to the garage.
What if the total costs, electric, additional insurance, etc come to
more than £12 per week, are you going to claim he should have capped
it below £12?

Something like that, yes.

If he is developing office space he should obtain planning permission
like everyone else, then he can quite properly recover *all* his
costs. If he is relying on a concession he need to act with its spirit
and not take the p*ss.

.