Self-employed trader uses own home 10% for business purposes. He pays his landlord rent of £350 per month out of his bank account and receives Housing Benefit of £50 per month paid into his bank account. For income tax purposes is he allowed 10% of £300 or £350. BIM 47800 et seq. does not seem to cover Housing Benefit received. Housing Benefit is officially described "as a payment towards rent payable".
Common sense approach would seem to claim 10% of the net £300. But he does physically pay £350 each month. He is cash-strapped and the bigger tax allowance would be preferable.
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I don't see how the housing benefit could only be allocated to the 90% area of the house for private use. Even if he is cash strapped £12 tax saving a year isn't really worth risking or spending time on is it?