Mortgage Interest

Moobag

Hi

I have a client who uses one room in his house to run his Insurance business. He works from home everyday

He has an interest only mortgage and pays £886.00 per month on approx £190k.

I wasn't sure if I could put this through the accounts or not and if I can how much can I put in.

Any help would be appreciated.
:confused1:

AK002

Yes, i would say you can.

How many rooms in the house? I would be inclined to do 886/number of rooms.

Or apportion it to how long he spends in the room etc..

Julia Crouch

Hi Moobag

You might find the following on HMR&C web site useful in this respect.

BIM 47815

BIM 47820

BIM 47825

Regards

Julia

Moobag

Thanks for your help

T.C.

Just remember Capital Gains Tax can be taken into account on the sale of the house because it has been used a partial business use - be careful!

deanshepherd

T.C. wrote: »

Just remember Capital Gains Tax can be taken into account on the sale of the house because it has been used a partial business use - be careful!

Only if part of the property has been used exclusively for business purposes.

Moobag

when you say number of rooms, which rooms count?

AK002

Moobag wrote: »

when you say number of rooms, which rooms count?

All rooms bar bathroom.

So basically if he uses the 'office room' to do his work, and there are 8 rooms including the office room, then it would be mortgage interest say £100 p/m, over number of rooms..

Moobag

Thanks, thought that was right but had to check