University Lodgings also office what can i claim?

[freezingtime100]

Hi

I am currently doing a uni course and whilest doing so i have started my own company.

I current lodge/rent a room in a house costing me £120(inclusive of bills) a week as well as being my bedroom i also have a desk and use it to run my business .

Its quite a small room and having a desk in it takes a large aprt of the room up.

what would i be entilted to claim for the whole room ?

[elainec100@cheapaccounting]

For a limited company read here:

http://www.franklyaccounts.co.uk/fiveuseofhomedir1.php

[Crowy2004]

If you were to claim between £2-3 per week HMRC would probably have no concerns. There are plenty of threads on here that discuss use of home as office.

[freezingtime100]

For a limited company read here:



Thanks

So if my landlord charges me £120 a week and i do work from the office 7 days a week i can claim the whole amount?

is there a factor if the room is used for something else lets say sleeping in? as the link you provided above only mentions one use of the office in a day and doesnt factor in various use in the same day?

[elainec100@cheapaccounting]

Have you read the link?

the bit on calculate the rent is what you need !!!

Calculate the rent

The rent that you charge should be equal to the amount that the room in the house costs you.
That means that the income received is equal to the costs and there is no personal profit on the rent. So you do not have to pay any income tax on the rent received, although the income and costs will need to be shown on your self assessment tax return - just a couple more boxes to complete.
Let's take an example to show how this works.
Sam runs her business from home. She works in one of the bedrooms. The bedroom is used exclusively for business during the week but serves as a guest room at the weekends.
Her house has a total of 6 rooms, all of equal size.
Sam has added up her mortgage interest, council tax, utilities, insurance and broadband costs and they amount to £12,000 for the year.
She calculates the rental charge as follows:
Cost per room = £12,000 divided by 6 rooms = £2,000.
She uses the office 5 out of 7 days, so charges 5/7th of the room cost to the business.
The rental charge is £1,428 for the year.
Sam is paid this rental from the business.
The business records this as a cost in the company accounts, which reduces its tax bill.
Sam enters the figures onto her self assessment tax return but has no further tax to pay on the amount received from the company.

[Zeno]

Does the OP actually mean he has started a limited liability company or is he using the word "company" in place of business?

[freezingtime100]

Have you read the link?

the bit on calculate the rent is what you need !!!

Calculate the rent

The rent that you charge should be equal to the amount that the room in the house costs you.
That means that the income received is equal to the costs and there is no personal profit on the rent. So you do not have to pay any income tax on the rent received, although the income and costs will need to be shown on your self assessment tax return - just a couple more boxes to complete.
Let's take an example to show how this works.
Sam runs her business from home. She works in one of the bedrooms. The bedroom is used exclusively for business during the week but serves as a guest room at the weekends.
Her house has a total of 6 rooms, all of equal size.
Sam has added up her mortgage interest, council tax, utilities, insurance and broadband costs and they amount to £12,000 for the year.
She calculates the rental charge as follows:
Cost per room = £12,000 divided by 6 rooms = £2,000.
She uses the office 5 out of 7 days, so charges 5/7th of the room cost to the business.
The rental charge is £1,428 for the year.
Sam is paid this rental from the business.
The business records this as a cost in the company accounts, which reduces its tax bill.
Sam enters the figures onto her self assessment tax return but has no further tax to pay on the amount received from the company.

Ok I read it before.My landlord charges me a £120 a week for the room and i work 7 days a week from it .I also sleep in it .Can i claim the full amount? (as your above information doesnt mention using the room for differnt purposes in the same day ie work & lesiure so would that have to be divided up by hours?)

[elainec100@cheapaccounting]

As you live / sleep / study in the room it is not used 100% of the time for business.

What percentage of the time do you use it for your business? I expect very little.