Hummmm, sole trader query.

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:28AM in AAT student discussion
A sole trader running his business from one room in his home, wants to get an alarm for his home, which although it would cover every room, it is still only required solely because of the business. Can the whole cost of the alarm be claimed as an expense.<BR><BR>Also am I right in saying that he can also claim a percentage of his household bills as expenses? If so, does anyone know what percentage it is?<BR><BR>Ta for any help!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Hummmm, sole trader query.

    Hi Noush<BR><BR>Not sure about the alarm, but with regard to household bills, they can claim either £102 or £104 (not sure of exact figure off the top of my head) without supplying receipts. After that receipts have to be provided. Also not sure of the percentage ............... but I do know that if they claim these sort of expenses then his property is subject to some CGT if sold, so they need to weigh up the costs as it may cost them more in the end.<BR><BR>Sorry I couldnt be more help, but am only doing Personal Tax thank god.<BR><BR>Good luck!<BR><BR>Jasper x
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Hummmm, sole trader query.

    Thanx for that. <BR><BR>I'm doing personal tax aswell! I think that's the hardest one so far.......pile of pants! Good luck for yours!<BR><BR>Noush.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Hummmm, sole trader query.

    Hi Nouch<BR><BR>I would think that because you are using one room for business and the remainder of the house for private use, I would say that you would need to work out the floor surface. Once you know how many square metres are used for business you can then apportion the bills accordingly and claim that portion for business use. As for the alarm, I would say the same, you would need to apportion it even though you say you only need to instal it because of the business, but your private portion would also benefit from this installation and therefore would need to pay a portion.<BR><BR>These are my thoughts, I did not do personal tax but have been doing business tax and have run my own business from home.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Hummmm, sole trader query.

    oops ............. our tutor hasnt taught us anything about this!!! where's my text book?????????????????????????????????

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