Use of home as office

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I wonder if any of the guys in practice can help as I am a bit unsure about correctly calculating the use of home as office. The rules are very vague on this subject and even though I am an accountant, I work in industry and don’t deal with this subject on a daily basis.

I run a part time business as an accountant and consultant outside of my full time employment and run this business from my home.

I have based my calculation on total costs per month (rent, council tax, water, gas, electric, insurance, telephone and internet), divided it by the number of rooms in the house and multiplied it by the percentage of business use.

Total Costs: £814
No of rooms: 1/5
Business use: 90%
Charge p/m: £147

I only use the one room for business and use it for personal use also. I spend most of my time in there studying for my CIMA exams which I am classing as business use on the basis that the qualification allows me to add value to the service I provide my clients in terms for greater knowledge and experience.

My concern is that £147 per month is a large claim and I am uncertain if it is justified since I spend about 4 hours per night in that room.

My other concern is with regards to business rates and capital gains as 90% of that room is used for business.

Any advice would be great.

Thanks

Don

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  • ereid
    ereid Registered Posts: 28 Regular contributor ⭐
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    Don Juan wrote: »
    I wonder if any of the guys in practice can help as I am a bit unsure about correctly calculating the use of home as office. The rules are very vague on this subject and even though I am an accountant, I work in industry and don’t deal with this subject on a daily basis.

    I run a part time business as an accountant and consultant outside of my full time employment and run this business from my home.

    I have based my calculation on total costs per month (rent, council tax, water, gas, electric, insurance, telephone and internet), divided it by the number of rooms in the house and multiplied it by the percentage of business use.

    Total Costs: £814
    No of rooms: 1/5
    Business use: 90%
    Charge p/m: £147

    I only use the one room for business and use it for personal use also. I spend most of my time in there studying for my CIMA exams which I am classing as business use on the basis that the qualification allows me to add value to the service I provide my clients in terms for greater knowledge and experience.

    My concern is that £147 per month is a large claim and I am uncertain if it is justified since I spend about 4 hours per night in that room.

    My other concern is with regards to business rates and capital gains as 90% of that room is used for business.

    Any advice would be great.

    Thanks

    Don
    http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm

    try this
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