Use of home

burgburg Experienced MentorGloucesterPosts: 1,440Moderator, FMAAT, AAT Licensed Accountant
I have clients who use a part of their home to run their business on a regular basis. I know there are mixed opinions on what you can claim but I usually claim on a proportion basis which is justifiable.

Most of my claims are for around £500 - £1000 per annum.

I have a new client that has a substantial property and uses one room 7am - 6pm as an office. She then uses most of the land to store buses. The client thinks 50% of the area of the property is used but could see an argument for somewhere between 25% - 50%.

My calculations equate to a claim of £500 - £1000 PER MONTH.

What are your views on this level of claim?
Regards,

Burg

Comments

  • RachelRachel Trusted Regular Posts: 349FMAAT, AAT Licensed Accountant
    I assume the buses are part of the business, I would try find out how much it would cost to store the buses of site so that you can be confident with your figure.
  • deanshepherddeanshepherd Font Of All Knowledge Posts: 1,809Registered
    Very interesting scenario. I think you need two separate calculations: one for the room and one for the land.

    The land will not be using any gas, electric, water rates, insurance, council tax etc.

    I assume with such a high claim that they have a big mortgage or are paying a lot of rent. If so, I think you would need to consider how much of the mortgage/rent relates to the property and how much to the land.

    I am no surveyor but I suspect the majority of the value is in the property and immediate grounds, rather than the excess land used to store buses.
  • burgburg Experienced Mentor GloucesterPosts: 1,440Moderator, FMAAT, AAT Licensed Accountant
    Hi Dean,

    Thanks for your thoughts. Was along the lines that I was thinking. Yes there is a substantial mortgage about £400k its about £2000 interest a month.

    I was also thinking about calculating a rough split between value of property to land again assuming most of the value would be attributed to the property.

    Will do some calcs and let you know any outcome.
    Regards,

    Burg
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