eI'm just starting on a tax return of a sole trader. He lives with his parents and pays them rent. If I can't use the £4 a week for use of home office any more how would I calculate the use of home office rate? Would I take the rent paid as the total cost of the house and then apportion it as normal for the number of rooms and the time spent etc? Thanks
Bet they don't in which case the rent isn't really rent at all, it's giving the parents a bit towards food and washing the clothes etc.
If thats the case your client is basically looking for tax relief from something that is really costing them nothing. namely a work space in their parents home.
I wouldn't allow anything for use of home in that instance.
If on the other hand the parents declare the rental income for a set area of the house then I would use a calculation based on the rent devided by the footage rented multiplied by the footage used for work purposes.
Thats how I would treat it but others may have different approaches,
kind regards,
Shaun.
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Shaun
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