Use of home as office - new rules
I have been reading with interest the new HMRC guidance in their business income manual for self employed use of home as office claims which are clearly far more generous than previously, especially the allowance for mortgage interest and other fixed home costs.
I also note that their employment income manual dealing with the same issue has not changed and is still quite strict in applying the £2 rule and no allowance for fixed costs such as mortgage etc.
Presumably there has been a court case recently which has forced HMRC to change their BIM for self employed. And presumably, HMRC don't want to apply the same relaxation to their EIM.
My question is this - regardless of the HMRC manual (which is not law anyway), is there scope to apply the recent changes to employees/directors or is there some restriction or distinction somewhere that means that it really does only apply to the self employed.
I would have thought that there should be no difference in what can be claimed if two people are doing the same thing, one a sole trader and the other a director of his own company, and therefore the new guidance should, in equality terms, apply to both types of operation, but I suspect HMRC have some technicality somewhere that says otherwise.
Any comments would be appreciated.
- Do I have grounds to dispute our accountant’s fees? 188 6
- Is it worth being a limited company if already a higher rate taxpayer? 352 3
- New Client wants an Income Certificate for a Mortgage 896 21
- Can i reclaim tax if my fuel cost more than the AFR in a company car 160 3
- Where has Portia gone? 1,671 63
- transferring from franchisee to ltd comapny 96 1
- Is my client risking reputational damage? 209 6
- Sage line 50 payment before invoice date 191 11
- Performance measurement within accounting practice 259 4
- Best Tax / Accounts Production software 387 10
- Property Purchase in Daughters Name 331 9
- Merging my businesses 130 2
- Getting fees, getting harder? 3,723 73
- Spousal transfer and PPR 515 16
- VAT on commercial property 142 3
- Rogue Accountant 3,040 49
- deceased creditor 206 5
- Corporate member of LLP 278 1
- Investment company 272 6
- Error or mistake in CT return 345 1
- Services via intermediaries and new HMRC reporting requirements 781
- RTI - duplicate employee record 536
- Pensions Regulator 444
- How hard is it to reduce a code? 404
- Sage Vat return box 2 307
- Sanzar 305
- Digital marketing focus group 288
- How do you do it 279
- Portia ... Where art thou 260
- Kashflow balance sheet difference 255