OnTax Dunfermline Accountants Consider:

Claiming Working From Home Costs

Us Dunfermline Accountants Often Get Asked About Working From Home
Lets Take A Look At The Aspects Of It

What About My Home Costs?

We Are Dunfermline Accountants Who Love To Answer Your Questions!

Dunfermline Accountants, OnTax, have been questioned about how home costs can be claimed against tax. As Accountants we are quick to point out that when your home becomes a workplace also, some of the expenses have a dual purpose, no matter how small they can be. Dunfermline Accountants, OnTax, often find clients assume that this would normally mean that they are not allowable as a relief against tax. However, we have a legal methodology for getting around this!

We have located tax statute that allows an identifiable proportion of an expense (that is wholly and exclusively for the purposes of the trade) to be deducted as a cost in tax. In other words if you have a household expense of 100% and 25% of it can clearly be identified as being for business purposes, then that proportion can be claimed as a cost against your tax. Because we believe that this proportion is "wholly and exclusively for business use".

Costs You Can Claim

We have found in practice that a deduction can be claimed for the element of mortgage interest or rent, insurance and utility costs that relates to the business area where that part is wholly and exclusively for business use. We have successfully put through hundreds of claims for this. This does not mean for instance that a part of your home should be set solely aside and used for no other purpose than that of the business.

We have found that HMRC are content to interpret this statute as being that part of your home that is being used for the business and only for business for that part at that time, not necessarily all of the time. This means that where part of your home is used for business for a part of the time, then any costs that can be attributed to business use for that period of time are tax deductible.

Do I Need An Accountant?

We are happy to say that the answer is no you do not need to use any Dunfermline Accountants to help you do this.

You can either put these claims through yourself on your own tax return or you can use regular Dunfermline accountants to help you. For more info contact us

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