Editorial team AccountingWEB.co.uk
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Any Answers Answered: Director's use of home costs

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This month, TaxTV's Tim Good and Giles Mooney tackle two questions from Any Answers on capital allowances and director's costs.

25th Nov 2021
Editorial team AccountingWEB.co.uk
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To view the full questions and AccountingWEB reader answers click on the links below:

Landlords, capital allowances, desktops and laptops

The first question came from AccountingWEB member penelope pitstop, who had a question about capital allowances:

"Individual landlord bought desktop computer and monitor SPECIFICALLY for managing his rental business matters (three residential properties). Business use of these is approaching 100% and the equipment is used from home. He wants to claim for the cost of these against his rental income... Does this then lead to the perverse situation of, say, a landlord who does all of his rental work on his laptop 'on the hoof' outside of his home? Would it be stretching it to make a claim in that unusual case?"

Directors use of home cost

The second question came from Adzuk, who wanted to know about director's use of home costs:

"A client's old accountant has calculated use of home as office costs around £6k in last two years. It's quite obvious the old accountant has not used flat rates, probabaly used use of home as an office calculator. The client is not provding enough information. Is there any other way to work out this cost?" 

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Replies (5)

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By Arbitrary
26th Nov 2021 13:41

Tim, what about solar panels on the roof of rented property as regards capital allowances?

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By Tim Good
26th Nov 2021 14:02

Not for dwellings.

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By Arbitrary
26th Nov 2021 16:18

Thank you Tim. I heard an argument from an 'expert' many years ago that the solar panel equipment on the outside of the house did not constitute use in a residential property. I did not agree but thought I would raise the matter with you just in case the argument had any validity.

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By Ben Alligin
26th Nov 2021 14:11

What about the basis under which the rental accounts are prepared?

If prepared on the cash basis, presumably the computer would simply be expensed in line with Giles's original suggestion, or are there different rules for cash basis for rental accounts, compared to cash basis for self-employed?

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By Paul Crowley
26th Nov 2021 18:57

As always much appreciated

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