Re: Use of home as office - allowable expense?

On 10 Dec, 08:42, "Tim" <m...@xxxxxxx> wrote:
"Simon" wrote

The OP clearly said e makes a few phone calls from his kitchen.

Where did the OP say that?

The OP said: "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)."

He later said: "Mr A rents the house from the landlord as an
individual.
Mr A is also a director of his Ltd company. The company's reg address
is his Accountants.
I have used a part of the kitchen and bathroom (using work hours to
awake hours not 24/7) to be used in business hours to come up with
1/3.
I suggested to him that it would be a repayment of expenses - as
opposed to rental income for him (which would have the rental costs
to
his landlord / utilities against it which makes it nil profit).
If he used part of his home as an office - and made a claim on the
company for say 1/3 of total costs - would he have to pay business
rates (he would be paying council tax on the whole house)"

For all of you (Tim and Ronald) who are not sure what the quotes mean
please let it be known that it is an exact quote of what the OP said.
For the rest of you please ignore the obvious.

When the OP said: "I have used a part of the kitchen" he didn't say it
was for making phone calls.

What interests me is the the OP started of with "a friend", changed to
"I have used" before appearing to revert to his friend. Maybe the "I
have used" simply means he's used it in a part of the calculation for
his "friend". My guess is that the kitchen and bathroom were not used
for the business but for their usual purposes in a residential
property.



.

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