Home as office allowance – Any experience/advice?
Hi, so for twenty-odd years I’ve been told by my accountants that I can claim 10% of my home expenses (Mortgage interest or rent/utility & council tax) as an allowable home as office expense to offset against my profit, so that’s what I’ve been submitting.
Now a different accountant at the firm is only allowing £6 per week and doesn’t recognise her colleague’s advice (this has happened a lot).
As usual, Google throws up lots of different advice, some say the allowance can be calculated on floor space of the home office against the total property, others that it’s a fixed rate. Then there is the argument fo whether a landlord is actually classed as running a business or it’s just “income from land and property” (which is an insult to those of us who run a full-time BTL portfolio of HMO’s requiring hours of work and dedication each week).
Everybody reading this must submit a tax return so has anyone had any experience of HMO challenges with regard to claiming this allowance?
Please note I’m unfortunately stuck as a sole trader, unable to incorporate despite years of trying so only advice relating to that tax status please.
Hopefully, readers advice on this subject will benefit all of us!
Andy
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Member Since May 2022 - Comments: 42
10:17 AM, 27th January 2024, About 2 years ago
Reply to the comment left by Lisa008 at 27/01/2024 – 10:00
Thanks for your response Lisa. As you can see, there is a lot of variation on advice and how people treat it themselves. There is a massive difference between £6 per week and a percentage of my actual and genuine costs. Like 1000s of pounds in tax savings, so if it can be claimed it is certainly worth it. But I also take on board advice about CGT implications in the event of sale of my home.