Starting up:
Is there any tax relief for working from home?
If you use your home for business purposes, HM Revenue & Customs will allow you to claim the proportion of household expenses allocated to the room that you use.
You should keep a record of the household expenses and the time that the room is used for business purposes which together form the basis of the claim. You should keep a record of usage for a representative period to demonstrate your typical pattern of home working, in order to work out the proportion of expenses you can claim. We will help you to calculate the apportionment and also ensure you don’t fall into a capital gains tax trap.
If you have a separate telephone line installed which is used purely for business purposes, tax relief can be obtained for the full costs of that line. It is more normal to share the domestic line which means that you must work out the proportion of business to private calls and in this case the line rental charge itself is normally treated as private.
The cost of furniture or equipment used at home for practice purposes will be eligible for tax relief in the form of capital allowances.
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Where next?
Within Income TaxWithin Starting up ...
- Developing your business idea
- Your business structure
- Setting up
- Accounting systems
- Payroll and PAYE
- National Insurance contributions
- VAT
- Corporation tax
- Contact us about this issue
- Read about how we can help you & your family
- Request a meeting with us
