I've just taken on a new client who is a market researcher amd works from home. They claim for their telephone and mobile but can they also claim the £3 a week?
They have also had to have their home office redecorated due to shelves coming off the walls, can any of this expense be claimed?
Also, are there any other expenses I haven't mentioned such as haircuts, clothing allowance as they are meeting new clients all of the time??
They're fine to claim their telephone and mobile phone costs as long as they apply the appropriate private usage add back. The £3 per week is supposed to cover the costs of using an area in the house as an office. This includes light and heat, rent, water etc.
Redecorating costs probably wouldn't be allowed, unless your client is willing to lose his capital gains tax exemption on the area in question (not recommended). Shelving and filing cabinets etc should be ok though.
Haircuts and clothing would not be allowed. For an expense to be allowable it must be incurred wholly and exclusively for the purpose of the business.
Don't forget that your client can also claim a mileage allowance at up to 40 pence per mile. This is tax deductible.
