Help Centre

Claims for using your home as an office

There are two ways to claim for using your home as an office, one simple, and one more complicated.

Simple

HMRC will not charge tax on you personally as a benefit in kind if the amount claimed is no more than £208 per annum. If you feel this is possibly under claiming your costs, then the more complicated method maybe for you.

Complicated

You license the company to occupy your premises and charge rent. The rent that is charged is tax deductible in the company accounts as �rent� but care should be taken not to charge too much since the rent is taxable on you personally.

You will have to declare the rental income on your personal tax return but can claim expenses incurred, which will include mortgage interest, building insurance, repairs and maintenance, light and heat etc. The amount claimed will be a proportion of the total cost based on the area and time.


What you need to do: You should form some kind of agreement with yourself where you personally charge the company for renting the space in your house. There is then an expense against yourself.

There are benefits for not including electricity and gas within this rental cost as you can claim the VAT back if you are registered so please enter these costs as separate expense items under the relevant suppliers name and the percentage you have decided to proportion to the business.

The rent you charge your company can be part paid by settling a percentage of the electricity and gas, so if the rent is £200 per month and this includes light and heat but the business percentage will be settled by the company directly. To do it this way it is best that the invoices for light and heat be addressed to your company. You do not need the contract to be with your company - simply change the way they are addressed.

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