Home Office Expenses

[OnlineSeller]

I remember reading somewhere that there is a flat rate available for the use of a room in your house for business purposes (not solely for that purpose) which was £3 a week from memory however I'm not sure what you call it and so can't find a reference for it on HMRC.

Did this ever exist and if it did does still exist?

 

[elaine@cheapaccounting]

Yes it is exists and is £3 / week

 

[OnlineSeller]

Great thanks. I can't be bothered with the last minute faff of trying to calculate my expenses.

I take it this cover only the aesthetics/upkeep/repair of the room and the heating/lighting etc. It doesn't cover the costs of the equipment or services in use in the room such as broadband, telephones, printer consumables ie it's not the running costs of the business just the costs of making the room habitable if any of that makes sense.

That's why I was looking for references for it.

 

[Scalloway]

HMRC guidance is here

http://www.hmrc.gov.uk/manuals/bimmanual/bim47825.htm

 

[OnlineSeller]

Thanks Scalloway. That's a good guide.

 

[elaine@cheapaccounting]

Are you a sole trader or limited company?

 

[OnlineSeller]

Very small sole trader but also employed full time.

 

[OnlineSeller]

OK I have now calculated Net Profit. Turnover - Cost Sales - Overheads - AIA.

I have fallen below the NIC4 threshold (that's not affected my employed income that's right - it's purely on the profits of my business) however I hadn't claimed in advance the small earning exemption so I believe I still have to pay the NIC 2 contributions as I don't have that exemption.

My total income falls below the upper limits so basically

I need to pay:

Profit * 20% + NIC 2 contribtions.

I have no investments or tax credits to complicate things.

I can honestly say that was an absolute nightmare. The work in trying to get all the information into a format that I could use to provide me with the necessary figures was far in excess of what I had expected. I had all the information it just wasn't easy to get the totals I needed. It was sheets after sheets in a spreadsheet. Definitely need to get a proper computerised solution sorted. I've seen several options which may work so will be spending some time now getting that together.

 

[elaine@cheapaccounting]

Or just get an accountant who will take away the hassle and worry. Who keeps up to date with the latest laws, regs, software etc. Who allows you to get on with running your business and having a bit of spare time to enjoy yourself.


#justsaying

 

[OnlineSeller]

Or just get an accountant who will take away the hassle and worry. Who keeps up to date with the latest laws, regs, software etc. Who allows you to get on with running your business and having a bit of spare time to enjoy yourself.


#justsaying

I'm beginning to see that