Use of home

burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
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?



  • Rachel
    Rachel FMAAT, AAT Licensed Accountant Posts: 349 Dedicated contributor 🌟 🐵 🌟
    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.
  • deanshepherd
    deanshepherd Registered Posts: 1,809
    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.
  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    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.

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