Sole Trader home allowances

[jacktorrance]

Hi all,

I am employed full time but operate a freelance photography business as a second job which I registered as sole trader for in Jan 2012.

I live in a 1 bedroom flat in London and all of my freelance work is undertaken here. I maintain my own website, work on all images and conduct any promotional work from my lounge.

Since the lounge isn't a dedicated space for this work I'm wondering what the most appropriate way to calculate rent/bills allowances etc is?

Assuming that I spend a day a week working for the freelance business how do I calculate a fair figure?

 

[Scalloway]

You can either take a figure of £4 per week which HMRC will accept without further enquiry or if you want to go into more detail their guidance is here

http://www.hmrc.gov.uk/manuals/bimmanual/bim47800.htm

 

[Alan]

I read the examples in that link. To me it sort of says make up any formula you like as long as it is reasonably justifiable to apportion costs, basically a proportion of time and the proportion of floor area seems reasonable. Have I got that too wrong?

 

[Scalloway]

What you are saying is ok.