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Working from home Tax relief??

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Rasputin
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2015/01/19 15:00:30 (permalink)
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Working from home Tax relief??

Fcking hell feels like an age since I posted a question training its always about crap but anyways before i see the very expensive accountant, does anyone work from home and claim for it? 
 
I am planning on getting a two bed apartment in London and would work from home full time therefore using the spare room solely as an office. The basic relief i read is £3 per week lol but seems to be a bit of confusion about what i can/cannot net off against it. 
 
If anyone has any light on this please shout. 
 
Thanks 
 

Ra Ra Rasputin lover of the Russian Queen, Ra Ra Ra Rasputin Russia's greatest love machine (Allegedly)
#1

15 Replies Related Threads

    chris182
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    Re: 2015/01/19 15:21:20 (permalink)
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    Internet, phone, spare room as office the lot. Some don't bother saying it's not worth the hassle, my step dad doesn't do it.

    An expensive accountant, how expensive?
    #2
    Smokey87
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    Re: 2015/01/19 15:54:23 (permalink)
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    My accountant is £70 a month.
     
    I get my phone, mobile and internet. Also a quater of my council tax as well However im a limited company... dunno if that helps.

     
     
    #3
    chris182
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    Re: 2015/01/19 15:58:49 (permalink)
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    £70 ain't bad, my wife will be charging £600 a year.

    I have a Ltd company I'm not sure quiet the whole tax side but I put everything through thats related to business use. My wife says I push it though
    #4
    Rasputin
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    Re: 2015/01/19 16:16:58 (permalink)
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    Smokey87
    My accountant is £70 a month.
     
    I get my phone, mobile and internet. Also a quater of my council tax as well However im a limited company... dunno if that helps.




     
    Whose your accountant? Is it a chain ? 
     
    Tbh the guy wanted to charge me £250 just to sit down with him. My accounts are very simple but as i do a bit of business abroad and stuff it got complicated with VAT and the more of them i spoke to the more they seemed to up the price. 
     
    Im Ltd as well so would do the same for phone internet etc but to be honest they cost so little i don't really care its just the grand a month of equivalent on a spare room/office.

    Ra Ra Rasputin lover of the Russian Queen, Ra Ra Ra Rasputin Russia's greatest love machine (Allegedly)
    #5
    chris182
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    Re: 2015/01/19 16:32:33 (permalink)
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    £250 is that a chartered accountant? Shop about for an independent accountant should be around £600-700 a year. My step dad pays £500 a year but he only works with people in the oil industry or so he says anyway
    #6
    sillynarbie
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    Re: 2015/01/19 19:19:29 (permalink)
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    Charge out rates for an experienced an accountant who can help you should be around £50-100s an hour (not in London). The partner at my old firm was charged out at around £200 an hour, which was expensive for the area. You should avoid having a meeting with a partner first unless they're willing to give you the first meeting for free in order to discuss your business and needs (which they should do, because they want you/new clients). Bargain hard on this, they will eventually give in.
     
    You can charge a portion of your usual household expenses to your business if you use a spare room as an office. For exact items and percentages you'll need to speak to an accountant, my knowledge is a bit rusty now. But don't expect much IME.
    #7
    Smokey87
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    Re: 2015/01/19 19:21:03 (permalink)
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    Its an independant. However iv gave his details out to a lad from wales and a lad down south and both of them have set up with him. There was a fee to set up my LTD company but i just pay the £70 a month now.
    My accounts are all over the place as i get paid in dollars, pounds and the occasional random african currency.
    Im sure if you shop around you will find a good one near you. TBH i walked in of the street and sat dowm with him and talked through it all must of been there over an hour. Then went back a week later to set it all up. It didnt cost me anything for that advice. He told me to shop around the other places. He pointed out what i should be looking for from any accountant and he told me to stay away from one that he had heard a few negative things from (its since gone bust).

     
     
    #8
    Desmo
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    Re: 2015/01/19 21:31:03 (permalink)
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    I "rent" out part of my home to my limited company at £150 a month. Not sure of the qualifying details but I think you do need to have a mortgage on the property along with other bills that you can show you are paying out against.

    Life isn't about waiting for the storm to pass, it's about learning how to dance in the rain.
    #9
    Peanut_85
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    Re: 2015/01/19 21:47:15 (permalink)
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    You can claim £3 a week without keeping records. More than that and you should be able to support your figure. Usually work it out as follows:

    Say £1k on utilities for your flat. Say you have 4 rooms in the place and one is used for work therefore £250 business use (1/4 of £1k). If this room is then used only say 50% of the time you would work out business use as being £125 (1/2 of £250).

    However if trading as a ltd co you should have this set up as a rental agreement and put it through your personal tax return (although there would be no tax due on it) as if you don't it could cause issues if you were to sell your house.
    #10
    Peanut_85
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    Re: 2015/01/19 21:49:18 (permalink)
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    Ps you guys have cheap accountants. Anywhere I have worked would charge at least £1k for a simple ltd co set of accounts and corp tax return. Be careful as sometimes it pays to have a more expensive accountant. They can save you more than they cost you.
    #11
    chris182
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    Re: 2015/01/20 14:21:35 (permalink)
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    Bit like mechanics labour, here it's £35 per hour I can't remember what my bother said it was in London but I remember feeling sick at the thought
    #12
    sillynarbie
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    Re: 2015/01/20 20:31:24 (permalink)
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    Peanut_85
    Ps you guys have cheap accountants. Anywhere I have worked would charge at least £1k for a simple ltd co set of accounts and corp tax return. Be careful as sometimes it pays to have a more expensive accountant. They can save you more than they cost you.



    I worked at a top 10 international firm. You do not get charged 1k for a simple set of accounts, you get charged per hour, commensurate with the accountants experience. If your books and records are immaculate it will cost you almost nothing to get your accounts done because the (junior) accountant will just have to type everything into their accounts software and generate the accounts. If your books and records are a mess it can cost you several thousand pounds because your accountant has to spend all day reconciling figures and searching through boxes of invoices and receipts.
     
    It's as simple as that, there is no "standard" fee.
    #13
    Peanut_85
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    Re: 2015/01/23 22:21:09 (permalink)
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    You may be right about a top 10 ten firm mate but I have always worked at small/medium idependant firms. Although there is no standard pricing, fixed pricing is has been extremely common at every firm I've worked at. Very few jobs where I've worked have been billed hourly (although obviously staff still have hourly charge out rates).

    Out of all the firms I've worked £1k for ltd co accounts & corp tax return is about the lowest that's quoted. Even if the records are immaculate. Maybe it's different at a top 10 firm but can't believe they would be much cheaper than small firms.
    #14
    kitty
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    Re: 2015/01/24 17:59:02 (permalink)
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    We were recommended to reclaim approx 15% of all bills. Not mortgage as that would complicate things too much. 
    #15
    Trident
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    Re: 2015/01/24 21:04:40 (permalink)
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    We do our accounts monthly and stick them in for the corp tax return which cost us £1800 to £2500.  Don't bother claiming anything back other than a slice for the phone and internet. 
    #16
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