Corp Tax questions - Working from home

[Fasteddie]

Erm, the title says corporation tax so what is the business status, sole trader or Limited Company? Sounds like you are a sole trader who works from home. I'm assuming sole trader. Case law includes a well known example of some guy who claimed for multiple rooms in his house - office, business library, etc, and was deemed to be "taking the p!55" to cut a long story short. Interestingly it is also assumed that if the use of the room is solely for the business purpose with no other use it can then be deemed as ripe for some CGT charge at a later date when you sell up - this is what your accountant is referring to I presume. He is sensible and his advice is sensible, he is protecting you. It is you who signs the tax return at the end of the day and it is you who are responsible.

Oops, sorry, see you're talking about the working from home allowance, sounds more like a business though you have, not an employee working at home occasionally.

[bd6759]

Corporation tax is paid by companies, so quite clearly it is a company.

A company is a legal person, but it doesn’t have a home. A company cannot work at home, or anywhere else.

The business of a company is carried on by employees and office bearers. It those who might work from home.

[Fasteddie]

lol, no idea what it is tbh, title of thread mentions CT but nothing in thread indicates that it's a company, read thread again and sounds like OP is a self employed Onlyfans business who has got confused between the working from home allowance and claiming costs of "running a business from home." I guess the original title is wrong.

[Zorzi]

Your accountant is correct that claiming a percentage of mortgage interest for working from home can have capital gains tax implications when selling the property, as it may be considered partially for business use. However, other home expenses such as council tax, electricity, and insurance can often be claimed proportionally based on business use, provided they are reasonable and justifiable. The HMRC allows different methods, including a simplified flat rate or a calculation based on actual expenses, so it is worth discussing alternative approaches with your accountant.

Regarding your Airbnb plans, initial construction costs for a new structure are typically considered capital expenditure rather than deductible business expenses, meaning they cannot be offset against rental income but could impact capital gains tax in the future. However, ongoing costs like maintenance, utilities, and guest-related supplies can be deducted as business expenses. Since tax rules can be complex and open to interpretation, it may be helpful to consult another tax professional for a second opinion. More details on tax audits and financial reviews can be found at <a href="https://nowconsultant.com/audit-services-in-dubai/">https://nowconsultant.com/audit-services-in-dubai/</a>.

[Erikazaba]

Hi everyone I’m new to this discussion and I’ve really enjoyed reading all your comments.

I recently heard something similar about working from home and how some people are allowed to deduct part of their housing costs, depending on how much of the space they use for work. It seems like different accountants interpret the rules in different ways.

I’m really interested to learn how others handle this and what’s actually considered acceptable. Thanks so much for sharing your experiences