Hi I need to include use of home as an expense for a client that works on average 18 hours per week from home (works 45 hours per week in total) with other client I usually put in £2.00 per day but this client is fussy and will ask me how I worked it out etc.
How does everyone go about working out use of home allowance (without working out how many rooms in house etc)
Is this not only if you choose to use simpler income tax. I thought it was a take it or leave it package and not something you could pick and mix. Wouldn't you need to do cash accounting too?
mmm, seems that its not just a matter of want a different answer ask a different HMRC employee. Also seems to apply for their web pages as well!
I'm with Kris in that this would be for those going down the simpler tax route only (i.e. those who want to save on the price of a professional and do it themselves... They'll pay more tax and be more exposed to the risk (and fines) of getting things wrong but they'll pay less in fee's so a bit of swings and roundabouts).
The current going rate for home based workers is £4 per week although one can still use the percentage of floorspace method to calculate a figure but if thats any more than £4 per week one may be expected to justify such.
kind regards,
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.
Is this not only if you choose to use simpler income tax. I thought it was a take it or leave it package and not something you could pick and mix. Wouldn't you need to do cash accounting too?
Kris
You can use the new simplified expenses rules even if you dont use cash accounting. Though wouldnt use for the use of home calculation as the maximum you can claim £312 per year and usually you can get a lot more by the % calculation. You can also mix and match the flat rate expenses ie use flat rate expenses for vehicle calcuation but use actual business expenses for use of home calculation.
