Re: Use of home as office - allowable expense?

On Fri, 7 Dec 2007 10:36:04 -0800 (PST), "hotroduk2000@xxxxxxxxxxxxxx"
<hotroduk2000@xxxxxxxxxxxxxx> wrote:

Hi All

I was chatting to a friend earlier - he rents his home of which approx
1/3 in space is used as a home office and he is based at home working
as a sales consultant. He rents his home. I suggested that he should
be able to claim a reasonable amount of his rent & home expenses as
business expenses. His accountants suggested he didn't. But it amounts
to £300 per month if he did.

Is he able to make such a claim - I assume he does not have to pay
business rates - and as he rents there can be no capital gain issues
with increases in house values. Or would people suggest that its not
worth the bother to save £150 of tax per month (being a 40% tax payer
and 10% NI).

Many thanks

There will be a capital gains issue if he claims 1/3 as business. He
will only be able to claim letting relief on the 2/3rds let.

--
Alan "Ferrit" Ferris

()'.'.'()
( (T) )
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(")_(")
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