My client is upgrading his broadband from the residential to the business offering, because of the demands of his (home-based) business. He has hitherto apportioned the cost 50:50 between business and non-business use. The business broadband costs twice as much as the residential broadband. My client wants to know if he can apportion the new cost in the ratio of 75:25, which will have the effect of charging all the increased cost to his business. My initial reaction was that this was reasonable, but HMRC at BIM47820 - Specific deductions: use of home: specific expenses states that the applicable proportion should be based on usage.:
My question is: given that he is only upgrading for business reasons, is it allowable to charge the whole increase to the business, or must he follow the letter of HMRC's guidance?
Thanks in advance
Replies (3)
Please login or register to join the discussion.
Of course, it would
I agree with Peter. If the business usage is 50%, the client can claim no more than 50% of the doubled broadband cost.