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Use of home as office?

Use of home as office?

Hi everyone. I have a client who a maths and science tutor and has many of her students going to her home to be tutored. She currently uses the flat rate for use of home as office rather than a proportion of the total household costs. However, she has recently had a new floor installed in her hallway as the old one had started to collapse and was a safety hazard. Is it acceptable to continue to use the flat rate but also to claim a proportion of the cost of the repair on top of that. Her students have to use the hallway to access the room in which she tutors.

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23rd Feb 2016 21:42

Yes
Take the cost of the repair and apportion the use of the hallway between business and personal use, obviously the business use will only be a tiny fraction of the overall use, maybe students loiter for 1% of the time in the hallway.

Assuming a £10k flooring cost she could offset £100 against her income.

However, if she could sustain that were it not for students she wouldn't need to repair the hallway, perhaps by using some kind of pole vault, then she may be able to sustain a larger proportion of the cost, although you'll then obviously make the neccssary notifications for business rates and PPR.

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By JimFerd
24th Feb 2016 09:21

You'd first need to check if the new floor was an improvement or repair. There being no scope for revenue tax relief on the former.

That being said, as "The Doctor" suggests, you'd be hard-pushed to get any meaningful deduction for the floor even if you can class it as a repair.

 

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24th Feb 2016 09:30

Flat rate not an allowance

The flat rate for use of house is not an allowance. It is what HMRC will accept as a use of house cost without any evidence of actual expenditure. If you are going to start looking at claims above the flat rate then you may as well look at all appropriate expenses.

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