Re: FN-FORUM: income tax (uk)

date posted 8th January 2008 12:25

I've asked my accountant this very question a few times. Their advice is
mixed, although based on the fact I own my house rather than rent.

They say do it but be careful and probably best to tell taxman upfront so he
can send letter approving your scheme.

Their advice on setting payments is keep it small. Don't do it if you are
using a shared living/working space. But there is in their eyes no
difference between you renting a portion of your dwelling to your business
and renting space in a shared office in a commercial premises. It's just the
taxman is of the opinion that we are all criminals and will assume you are
on the make.

Another piece of advice they give is back it all up with paperwork. Invoice
your business each month so you have a piece of paper detailing the payments
and even write a contract between you and the business detialing what will
be provided (electric, gas, space, etc) each month and at what cost.

That's it.


On 8/1/08 13:14, "Guy Carnegie" [EMAIL REMOVED] wrote:

>
>
> Just wondered how people as freelancer working at home worked out tax relief
> on rent & utilities. I was told a while ago by the helpline to take a
> percentage of time spent working per week or month off rent and kind of
> similar for utilities (although they're obviously not always in use in 24
> hours). Anyone know how much things change if you work from a spare room
> rather than say a living area?
>
> Cheers!
>
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