Tax return - allowable expenses

[adnauseum]

Does this sound like a ‘reasonable’ way to work out my WFH expenses?

I’m using this tax calculator: https://www.getcoconut.com/work-from-home-allowance-calculator

I worked as a freelance writer in one room out of five in total (excluding bathrooms and halls). Entered sum total of annual mortgage interest, electricity, gas, council tax, water and broadband. I will add the sum generated from the calculator to the total cost of other things like work-related laptop purchase, travel and food for business trips etc… That then forms the sum for my ‘Work From Home allowance expense claim’.

Also, I spent about 30 hours a week working in the room. But it asks me ‘And of those same room(s), how many hours a week do you spend in them for Personal use?’

The room is otherwise my son’s bedroom. Does it actually mean MY personal use? Almost zero. My son’s, or the family collectively? How can I put a number on that? Other than working in there, it’s mostly not in use. Do I count the hours my son is sleeping in there and the bit extra for the occasional time he plays in there? Seems a weird question.

Thanks in advance for your help!

[someone]

One thing my accountant warned me about if I did this (in the 90s - so it might be different today) is the possible impact on CGT if/when I came to sell the house.

You won't be able to claim the 1000 tax free trading allowance if you claim actual expenses either.

I would assume that a freelance writer doesn't have much by way of expenses other than the things you've already listed. I don't know the answer to your question but I would assume that your son's use as a bedroom counts as personal use. Which inclines me to think that you're possibly going to do better with the 1000 trading allowance rather than actual expenses even ignoring the possible impact on CGT in the future.

[bd6759]

Where it says “personal use” it means “non-business use”

You should read this. Council tax and interest are not allowable.

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim47820

You will need to apportion the total determined room expenses by a further 30/168 to find the business proportion.

[adnauseum]

Thanks both for your free advice!

It's not what I wanted to hear but ho hum. Looks like the 1k trading allowance might be my best bet if I am understanding this correctly.

So I can't include council tax or mortgage interest since the room I used for work was not used SOLELY for work? And I have to enter 138 hours as non-business use? (168 hours in a week minus 30 hours off actual work?)

Thanks again.

[bd6759]

Presuming you are in your sons room 30 hours per week, 52 weeks a year.