Use of home as office
[Deleted User]
Posts: 0
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
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
0
Comments
-
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
try this0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 324 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 94 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership