use of home allowance

Tax advice · Postby **Tax advice** » Tue Oct 28, 2008 4:14 pm

How much maximum I can claim as use of home allowance for the year ended 31-03-2008 for self assessment purpose.
regards

robbob · Postby **robbob** » Tue Oct 28, 2008 4:26 pm

Are you self employed worker trading from home?

What is the nature of the work you do?

Tax advice · Postby **Tax advice** » Tue Oct 28, 2008 4:36 pm

I am working from home as mortgage advisor

Simon Sweetman · Postby **Simon Sweetman** » Tue Oct 28, 2008 4:50 pm

The question essentially is what extra costs you incur because of working from home. Do you have a room devoted to the business ? Are you working and using light and heat when nobody else is in the house ?

If the answer is "no" then HMRC will allow you Â£3 a week. If there is a room used only for business then you can claim a proportion of running costs. If it's business some of the time, make a sensible apportionment.

robbob · Postby **robbob** » Tue Oct 28, 2008 5:58 pm

Hi Tax

Are you self employed or employee?

robbob · Postby **robbob** » Wed Oct 29, 2008 9:12 am

Hi again Tax

IF you are self employed you have a bit more scope than just claiming extra costs when working from home.

There is guidance on the revenue website as to what proportion of household expenses you MAY be able to claim.

Note if you own your own home it may be advisable not to have any room exclusively used by the business as this may mean that capital gains tax may be an issue when you come to sell your home.

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47815.htm

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