Use of Home Allowances

[deals]

I know that self-employed people who work from home are allowed to claim for use of a room used for the running of the business, whether or not it is solely used for business use, or only partially (with differing allowances of course).

But, rather than having to work out proportions of expenses each year how can I come up with a figure that would be a reasonable flat amount to enter as an expense for use of home?

Some years ago when I only used my home a small amount of the time for book keeping purposes the taxman said that he felt £500 per year would be a reasonable claim.

Since then I have moved home (with one less room than my previous home), then started work for someone, and am now back to being self-employed. My type of self-employed work has also changed, as I now use the computer for around 8 hours per day, less at weekends.

Any guidance would be appreciated, as it's so hard to find anything concrete on the Inland Revenue site.

[Newhere]

you can use any amount you like if you can justify it when the time comes..

Remember the basic rule? you can claim any amount that is wholly and elusively business expense and has no dual purpose unless there are specific allowances..

for full guidance you should start reading from here
http://www.hmrc.gov.uk/manuals/bimmanual/BIM47800.htm

[deals]

Thanks. Though from what I can see the guidance given by HMRC goes in to percentages etc indicating each expense such as gas/electricity, council tax has to be itemised, then a calculation worked out to come up with a figure they would be happy to accept as use of home.

Rather than having to keep all bills and do calculations I am happier to take a figure and just stick to that each year when I complete my tax return. That could of course mean I'm losing out, or the Inland Revenue is, though I suppose as you say if it's a sensible static figure they'll probably go along with it.

[RAL]

HMRC provides two options for home / office allowance.

1. First one is a fixed amount a week, I think it is £3.00 per week. For this you do not need to keep record and show apportion of the cost.

2. The other method is actual basis, means you need to work space you are using at home and accordingly use the % of the cost.

So choice is yours, either use fix amount and you do not have to do calculation or keep the record or use the actual basis method.

[deals]

HMRC provides two options for home / office allowance.

1. First one is a fixed amount a week, I think it is £3.00 per week. For this you do not need to keep record and show apportion of the cost.

I think the £3 per week is for employed people who do some work from home.

[Newhere]

it is only applicable employees and directors..
read here
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/IncomeTax/Taxallowancesandreliefs/DG_078386

[RAL]

I missed that you are self employed. However, if you claim small fixed amount, HMRC unlikely to question and would require supporting documents.

But if you claim a large amount, you may have to provide supporting documents and calculations if there was an enquiry.

[ddllrt]

The claim is not limited to employees.

Self employed workers can also make a claim. The link below makes references to £2 but this has since increased to £3 per week

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm

[Incredulum]

The claim is not limited to employees.

Self employed workers can also make a claim. The link below makes references to £2 but this has since increased to £3 per week

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm

This link does NOT state that you can claim, of right, a round-sum amount. It merely says that HMRC cannot be bothered to investigate a claim for £104.

[ddllrt]

Hence a claim can be made!