running a business from home

tyler_d

Hi

I have a few questions i hope people can answer about running a business from home.

1) Can i claim all the vat from my electricty, gas and other bills?
2) I have my own car but im told not to sign it up to the business due to benifit in kind, but i can the business pay for its insurance and petrol if it doesn own it?

Thanks

T

boomer_ie

tyler_d wrote:

Hi

I have a few questions i hope people can answer about running a business from home.

1) Can i claim all the vat from my electricty, gas and other bills?
2) I have my own car but im told not to sign it up to the business due to benifit in kind, but i can the business pay for its insurance and petrol if it doesn own it?

Thanks

T

T

I am of the understanding that you can charge up to 50% of bills depending on the amount of space taken up by the Business from home (IE Office space)

The business can pay you a mileage rate based on mileage undertaken in the course of employment.

Shane

is_that_so

My own accountant told me to set every expense against the business(self-employed and not a director), within reason. All my car expenses are included. My last tax submission was approved without any queries. I am not sure if the utilities are a set rate as he suggested about 70% - in order to show that you were only claiming the expense for business hours.

waz2304

tyler_d wrote:

Hi

I have a few questions i hope people can answer about running a business from home.

1) Can i claim all the vat from my electricty, gas and other bills?
2) I have my own car but im told not to sign it up to the business due to benifit in kind, but i can the business pay for its insurance and petrol if it doesn own it?

Thanks

T

Are you a sole trader or a limited company?

Littlepete

You can claim a percentage of your bills depending what percentage attributes to your business.

On the car front you cant claim petrol or insurance. What you can claim is milage at civil servant rates and your Subsistance (daily allowance) for when your out of the office. In rates of 5, 10 & 24 hour, again at civil servant rates.

I'd recommend talking to an accountant about your specific circumstances.

chump

remem the cgt ramifications of using your home for business purposes!

Evil Phil

The advice I was given was whatever percentage of floor space you company is using equates to the amount it can put towards the bills. That is if its using 10% of the floor space then it can pay 10% of the bills. If you charge your company rent then you'll be liable for cgt as chump said. This is if you own the property.

I don't know what the story is when renting.

tyler_d

What are the CGT ramfications? My accountant recommended that i avoid claiming because of this too.

JoeTurner

If you ever sell the house then its classification as a Principal Private Residence would mean you would not be liable for Capital Gains Tax on the sale.

However, if you charge rent to the company then the Revenue might take the view that your residence is used for commercial purposes too. Depending on how they view your circumstances you may be liable to pay Capital Gains Tax if you ever sold the house.

The current rate of CGT is 20% of the difference between what the house cost you to buy and what you receive when you sell it.

Hope this helps

Joe