use of home as studio for pilates
My client has rented a 6 room house and has bought a reformer machine to use with clients at home.
The machine was purchased in Nov 2011. The business started Nov 11. The lease on the property started in Nov 11 and she claims that the 6th room is used soley for the business. However, the lease prohibits any business use of the property.
During this time she has only had a few clients to her house to use the equipment. The group classes she runs are held at a hired venue.
What should she claim for? The machine cost £8,000 and I have claimed AIA on this, with no personal use.
I was originally going to claim for 1/6 th of the rent etc but am wary now because of the clause in the lease prohibiting business use. The income generated to date is minimal.
HELP! Any guidance/thoughts would be great.