use of home as office

use of home as office

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Client has home with three bedrooms and one living room, so 4 rooms in all. One bedroom is used as a study W&E 95% of the time, so use of home as office % = 1/4 x 95% = 23.75%.

Repairs and maintenance are to be done to one of the non-study bedrooms and to the bathroom. The expenditure will be expense rather than capital.

What % to apply to the expense?

a) the non-study bedroom: 23.75% or 0%?

b) the bathroom: 23.75% or 0%?

What would you do?

Red Leader.

Replies (4)

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Universe
By SteveOH
11th Oct 2011 13:42

No claim

Any claim for business use relates to the bedroom used as a study.

So, the claim for repairs to the non-study bedroom would be nil.

Similarly, the bathroom does not come into your calculations for a deductions claim so the claim for repairs to the bathroom would also be nil.

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By George Attazder
11th Oct 2011 13:51

No apportionment

As Steve says, the only room that features in your apportionment calculation is the non-business bedroom.

This expenditure shouldn't be apportioned like running costs (it's not general repairs, but specific repairs to parts of the house that are never used soley for business purposes).  It should apportioned on an actual basis.  How much of the expense was incurred wholly and exclusively for business purposes?  I suspect the answer, as Steve suggests, is none.

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By Sheepy306
11th Oct 2011 14:27

Study-specific expenditure?

So presumably by the same basis, if you were to replace the study window, that would be wholly allowable, or 95% at least ?

 

What about if you painted the whole exterior of the house, would 23.75% of that cost be allowable as part of it specifically relates to the study exterior wall?

 

Although the apportionment is calculated on a number of rooms basis, excluding bathroom and kitchen etc I believe that to be a general apportionment of utility bills etc rather than a strict guide as to what is allowable or not according to which specific room expense is incurred upon. I think of it in comparison to rented office space, if I rent an office, I would also expect access to a toilet and a kitchen although I may not specifically be paying for it, although it may well be included within say a service charge for the building.

 

In my calculations I throw in a % of household repairs and maintenance, cleaning, household insurance and water rates. These are all costs that I would have to pay if I was renting an office so don't see why working from home should be any different.

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By TaxationPete
13th Oct 2011 06:48

Whilst the number of rooms approach may benefit the owner HMRC may not agree and they often resort to dealing with the apportionment by floor area including the kitchen and bathroom. Regards Peter

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