Re: FN-FORUM: income tax (uk)

date posted 8th January 2008 12:37

Guy Carnegie 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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>
Funny enough, I've just been talking to an accountant today about the
same thing.

His reckoning was that you work out the volume of the room you're using
as an office, and work it out as a percentage of the volume of the
complete house. That's your percentage.

Things like broadband, phone, etc. can be more than that percentage -
phone could be 50% (but you're best to record phone use if poss as
proof) broadband 50%, that kind of thing.

Alex
http://www.ozbon.com