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one man company - home office costs deductible?

one man company - home office costs deductible?

Client provides services at his client premises but does a lot of work at home in his office. He is the single employee/director/shareholder.  Are a proportion of the costs of heat, light, mtg interest, rates deductible as they are in self employment?

These are his only fixed work premises (i.e. his home office).  The service he provides to his clients takes place on their premises though. He presents professional courses and has to stay in hotels for a week at a time to attend his client premises.

Thoughts anyone?



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10th Jan 2013 08:38

Account for them as rental charge

In such cases the expenses can't be allowed as an employment expense so the director re-charges them to the company under a home rental agreement.  This results in them being shown in the accounts as rent and in the personal tax return as rental income AND rental expense, ie they are neutral in the tax return.

There have been loads of postings on this but have a look at this article by Jennifer Adams

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By imbs
10th Jan 2013 10:04

Thank u so much paul
Much appreciated.

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11th Jan 2013 14:38

Thanks Paul..

its good to see that someone reads my text!

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