Need some advice about AIA. A client of mine works from home and has had repairs/improvements done on the business part of her residential property. She has spoken to the tax office who inform her that these can all be claimed as AIA 100%. The total is about 4K.
I thought that it was only plant & machinery that qualifies for AIA.
Be very, very careful about claiming allowances on business part of residential property. Your client would be leaving herself open to Capital Gains Tax on the business part of the property when she comes to sell the house. What sort of business does she run from the house? If she is only using 1 room as an office then I wouldn't claim for the repairs. If the front room is a shop, then she would claim it.
She has a small treatment room/clinic with waiting room used 100% for business. I have just phoned HMRC to clarify. They advise to put down as repairs & renewals.
Have you any advice on claiming use of home expenses. Is there a round weekly figure that HMRC allow instead of finding all the household bills and calculating a percentage. If not what would you work out amount on. Light & Heat, C tax, Wtr, home insurance. Would you include mort Interest or leave out?
As I put in another reply on here, use £750 a year as business use of home, it saves all the hassle of working out percentages.
If you claim R & R for the work on the treatment room, you will leave her open to CGT if & when she sells the house. It may be better to look at the business paying the mortgage payer a rent for the use of the room. Also ensure that her mortgage company knows she is running a business from home. If you want to chat more about this, you can always email me direct on peter.sludden@talktalk.net
I don't want to open another topic - on the same subject - so I add my query here (if you don't mind).
I have a case where one of my clients bought vans (which are eligible for AIA) - however the total net value for the year is nearly £90K. There is also WDV b/f - from last year of about £7K.
Can I use out the whole £50K and apply 20% to the remainder? How do I do it - technically.
