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Use of Home Expense & Sole Director SA Return

Claiming flat rate home office expense and director self-assessment return.

Hi, I am the sole director of a start-up limited company and looking for advice on home office expense. Many thanks if anyone could share some thoughts!

1/ Since I do all my work at home, can the company claim a flat rate of £18/month instead of  £4/week?

This question raises because "Other expenses: home: household expenses: expenses that are deductible" (EIM32815 under EIM32700CT, refer to below quote) states that £18/month deduction for monthly paid employees. I am not sure if the company could still claim monthly expense at flat rate while the director has not received any monthly/annual salary?

Quoted: "For ease of administration, from 6 April 2012 you may accept that employees who satisfy the conditions for relief (see EIM32760) are entitled to a deduction of £4, or £18 per month for monthly paid employees, (exclusive of the cost of business telephone calls) for each week that they are required to work at home, without having to justify that figure."

2/ For home office expense at flat rates (weekly/monthly), would it be correct to think that this expense is not counted as taxble income? Therefore, does not need to be included in director's self-assessment return?

Thank you.

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By zarar
15th Oct 2018 19:09

You need to speak to your accountant for advice on this.

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15th Oct 2018 19:59

Does your employer require you to work from home or do you choose to? Are you aware that the rules are different?

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16th Oct 2018 08:20

Your background:
“...the director has not received any monthly/annual salary...”
Legislation quoted: “...£18 per month for monthly paid employees”.

The answer’s in the question.

Besides “...the director has not received any monthly/annual salary...” might raise other issues, costing more than taking an extra £8pa out of the company.

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