what can be tax deductable...

[kenny]

The capital allowance figure is 40 % year one 25 % in the later years
Also you cannot technicallly claim for an "office" at home unless you have a room specifically designated as an office, no bed and no other use.
But basically it is any expense related to your self employment.

[grumpygrouter]

Originally Posted by kenny

The capital allowance figure is 40 % year one 25 % in the later years
Also you cannot technicallly claim for an "office" at home unless you have a room specifically designated as an office, no bed and no other use.
But basically it is any expense related to your self employment.

That is not true kenny. It does not have to be a "designated" area, you can run your office from anywhere you like in your home. In fact if you do have a room entirley designated as an office, there is potential to have that "office" designated as commercial space, this leaves you open, potentially to commercial rates and the possility of additional taxation if you ever sell your home. If you have a bed in the room, it proves you have not got a commercial space. I use part of my home office as a private reading area. I have my car and photo mags stashed there for that very purpose.

All you have to do is justify the amount you are claiming if you get an inspection. This is normally calculated on the percentage floor space of the home taken up by the office area. This percentage can then be used as the basis for use of heat/light water and a"rent".

[kenny]

Yes you are right but do remember to calculate the actual useage therefore if you use your "office" for 4 hours per day only claim for a fraction of the cost if you also use it for other purposes.
Technically it does have to be sole use but HMRC are not that pedantic.
See BIM4725

[grumpygrouter]

Originally Posted by kenny

Yes you are right but do remember to calculate the actual useage therefore if you use your "office" for 4 hours per day only claim for a fraction of the cost if you also use it for other purposes.
Technically it does have to be sole use but HMRC are not that pedantic.
See BIM4725

I still have to disagree with your statement Kenny, the word apportionment is the relevant detail. Sole use is not necessary and if you check through your own reference BIM47825 incedently, you will see it actually gives examples of apportionment for dual use. I restate my point about having a "sole use" office in a house can lead to other taxation issues via your local councils as previously explained. I had this very discussion with my local council when I first started in business in 1995. I I set aside an area exclusively for business purposes I would need to register with them and pay commercial rates.