Working from home expenses

SystemSystem Posts: 103,153
This discussion was created from comments split from: How to treat gift purchased by business and process relating payment.

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  • nohatohamynohatohamy Posts: 3Registered
    hi,
    i hope if i can get assistance on this case,
    my Clint a hair dresser works from home using one room for her business from four bedroom house.
    My question is to claim expenses for light, heat, water and rent.
    shall i calculate the cost by dividing the total expenses cost by four, as she is only using one bedroom.

    Many thanks,

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,461Moderator, MAAT, AAT Licensed Accountant
    Hi @nohatohamy
    I have created a new thread as your question doesn't relate to the original OP and you may solicit more answers if you ask your own question.
    Is your client a sole trader? Is the room used exclusively for business or does it have some private use?
  • nohatohamynohatohamy Posts: 3Registered
    Hi,
    Apologise for confusion, its my first time to enter the disscution.
    My Clint self employed and the room is used exclusively for business.

    Thanks
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,461Moderator, MAAT, AAT Licensed Accountant
    Hi
    In short yes you can apportion the living costs to either the number of rooms or floor space as use of home.

    This extract from an article on Taxationweb explains the consequences of claiming exclusive business use though.

    When there is exclusive business use of a specific part of the home, the taxpayer will need to consider the implications carefully before proceeding to claim a deduction. When the house is sold the normal capital gains tax exemption on the disposal of a 'principle private residence' will be subject to a potential restriction in respect of any part of the gain that relates to exclusive business use. In addition, business rates might become payable in respect of the non-domestic use of an area of the house.
  • nohatohamynohatohamy Posts: 3Registered
    Thank you and really appreciate your help.
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