Self employed working from home and council tax

[m4tty]

Hi,

Just wondered what the score was when your self employed and claim a percentage back on gas/elec/water and percentage of landline for your home.

The council - how do they view this as your using part of your home address as a business premises. What percentage before they try to charge business rates?

Thanks

 

[paul b b]

Matty ......get your accountant to sort it. if you go to mad they will come down on you. if you try to get to much they will say that your spare room is a business premises and you'll have a nightmare.

 

[Doc Hudson]

I think it only becomes an issue if you have a lot of customers, employees, deliveries and/or collections at your door to such a volume that they disturb other neighboring residential properties. A single person using a room as an office is no different than a homeowner with a hobby that involves non-domestic actives. leisure go-carting, mountain biking, party DJ etc may all take as much of home as a sole trader electrician. I wouldn't worry too much about it. Home insurance may be void if you are storing excessive amount of toxic combustible materials. A person running a hair dressing salon at home or commercial scale food preparation with non domestic levels of hair product and cooking smells and waste into the standard drains would pose more of an issue. But most of your work is actually away from your home.

Doc H.

 

[Evans Electric]

Just don't tell them M4tty they may find a by-law to prevent you from doing that .

You get your bit set against tax, so settle for that .

They mainly get stirred up if you start trading from your house as in selling or forming a shop front etc .

I'm pretty sure it doesn't concern them if you just use one room as an office .

Edit : Must write at full speed !!! :| Someone up our road tried to open a Hairdresser's in their house and were stopped .

 

[professional]

The amount of running costs that you can claim back for a room in your own home is negligible, so don`t even bother - it just draws attention to you ....

 

[ProDave]

Yes my motto is keep it under the radar.

I use one room in the house as an office, and I also have a workshop built above my garage.

I don't charge electricity or heating costs to the business. I do charge my mobile phone usage and broadband fees to the business, that's all.

I was working for a customer last week who lets a whole house out as a holiday home by the week. Hearing how much he has to pay for business rates, (and he even has to pay business rates to have the bins emptied) was eye watering so I don't want to go there. He's in the process of winding it up as a holiday let, and will then be letting it on a 6 month short assured tenancy to a normal tenant where normal council tax applies.

So just keep shut about it and don't invite attention.

Also, some houses are sold with a covenant saying "no business use" if you have a clause like that, just keep quiet.

 

[betty swollocks]

As already said I wouldn't bother

Ive never in 20 years

I looked into it and found the saving wasn't worth sitting down and working it out

If you dont splash the waters the sharks (hopefully) wont come looking

 

[johninlondon1]

Also if you you register part of your private dwelling as a business, if ever you decide to sell then it will come in to the calculation for payment of Capital Gains Tax on the percentage of the house that is deemed to be part of your business.

 

[boltonsparky]

Tell them you're using a room for your business then tell them you use the room next to it for religious purposes and that you are a minister of said religion.... kerching.

 

[betty swollocks]

As already said, don't bother, the financial gain is negligible, claim too much and you will poke your head above the trench at hmrc

 

[brummydave]

Hi,Just wondered what the score was when your self employed and claim a percentage back on gas/elec/water and percentage of landline for your home.

The council - how do they view this as your using part of your home address as a business premises. What percentage before they try to charge business rates?

Thanks

i don't know how the council view this, but being self employed for 15years i've never had an enquiry from them or the HMRC about this subject. I echo others in saying it's very different running a business from home (eg hairdresser) to using part of the home to run your business (eg admin).

My accountant explained it simply as: How many rooms has your house (excluding kitchen & bathrooms), how many are used for business purposes. Example, 3 bedrooms, 1 lounge, 1 office. therefore probably 1/5 of the house is business. So you can have as tax deductable expenses 1/5 of heating and lighting. But not water. The phone cost is different and is up to you to specify how much is for business use. Could be 100%!

Hope that's helpful.

nightie night.

 

[Bacon]

I've just found out that i can claim for upto 7 years washing expences from the taxman so i'm going to leave it a bit then do the whole 7 years claim back in one go.

It doesn't matter if self employed or employed,so if you provide your own work clothes or your employer provides them you can claim the washing expences abck.

 

[steptoe]

I've just found out that i can claim for upto 7 years washing expences from the taxman so i'm going to leave it a bit then do the whole 7 years claim back in one go.

It doesn't matter if self employed or employed,so if you provide your own work clothes or your employer provides them you can claim the washing expences abck.

LMAO

you been watching Martin and his money experts ? the mrs mentioned something about it.

IIRC is used to be about 60£ a year, so in reality its only worth £12 , still, money is money.

 

[Bacon]

No Martin involved

Somebody the wife works with did it and got nearly £700 back

Maybe not 7 but at least 4years.

From £60-£120

Plus upto £200 for tools