I've searched to see if there is an answer for this on the site and HMRC and can only find the usual.
My question though is if someone runs two separate businesses from the same property (home) can they claim 'Home office use' on both businesses or just the one?
Whilst that I don't know for sure, I would have thought that it would have to be apportioned between the two businesses based upon the amount of time that is spent in the office working on each one.
As I said, I don't know for sure, so someone may well be along to correct me
Whilst the case may be cut and dried for one person running two businesses, what about a husband and wife both having totally seperate businesses from different rooms in the same house.
Both surely would be able to claim seperately on a proportional basis but what about the flat rate? Could both charge the £4 or would they need to share it?
Common sense would seem to dictate that it's £4 for the house not for the business but then when did common sense ever have anything to do with tax rules!
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
If that was the case, Shaun, I'd say £4 each. As each will be using electricity, gas, a room etc. But for an office that is used sometimes as one business, sometimes as another then I'd say £4 claimed once. Maybe easier to see if you use the non lazy version of working out the use of home allowance as a proportion of expenses.
Whilst the case may be cut and dried for one person running two businesses, what about a husband and wife both having totally seperate businesses from different rooms in the same house.
Both surely would be able to claim seperately on a proportional basis but what about the flat rate? Could both charge the £4 or would they need to share it?
Common sense would seem to dictate that it's £4 for the house not for the business but then when did common sense ever have anything to do with tax rules!
Shaun.
That's what happens in this household, and as the missus did the basics of running her business at different times to me usually, I claimed the allowance each, as we are two seperate entities. Although now I allow her £4/ week, and I claim a proportion of actual, as i now spend a lot more time in the home office than I did before.
If it were the single entity I would only claim the single allowance, as it is the person getting the allowance not the businesses. Although I would be inclined to calculate a proportional amount for each business run, if the amount of "office" time was significant
Thanks of for the advice guys, I think as he runs both businesses from home and probably from the room at the same time I shall charge each one a 50/50 split. It'll be safer that way and besides, it's money he's getting off his tax that he never knew before anyways... Lol
