Virtual Office + Work From Home expenses

[Drogowit]

Hello there,

Over a month ago I have posted my business plan idea and have discussed this on forums and received valuable feedback.
Right now I am about to start the business.
I have already made some purchases, logged them away in the spreadsheets.

Because my landlord agreement does not allow me to register a business address, I have decided to rent a virtual office that costs me circa 50.00 a month.
However, when I am not providing a service (Befriending/Companionship) and do paperwork, I work from home.

Therefore I wonder, if I am OK to claim expenses for both 50.00 rent for Virtual Office, AND a percentage of my flat use? It is not a great amount but it is indeed a cost for my service - Most of the electricity comes off my office space as otherwise I don't really use a lot of electricity etc.

I also have a brief spreadsheet that I could upload if it is any helpful.


Sincerely,
Michał

 

[kevin.doran]

No issue with you claiming for use of home, quite home much you can claim is another thing.

And £50 a month for a virtual office??? I hope you're getting more than a business address for that!

 

[Drogowit]

Hi Kevin,
Thanks for Your answer. I was wondering about reasonable calculations and what I believe will be best if I will calculate square meters for flat rental, use that percentage for council tax as well and try to figure out gas, electricity and internet the otherway.

Speaking of the virtual office, please find attached below what I get for 49 gbp:

MYOREGA BUSINESS ADDRESS
£49
When you need a prestigious and registered business address, without the commitment of a permanent office.

• Business Address
  Add your prestigious address to business cards and marketing material.
• Registered Business Address
  Use one of our prestigious addresses as your company's registered address.
• Marketing Images
  Add a picture of your chosen Orega Centre onto your website, sales packs and other marketing material.
• Mail Collection
  Orega will receive and sign for your mail. Your mail can either be forwarded or you can collect it from the centre. Mail forwarding is charged at Royal Mail rates plus admin.
• 10% Meeting Room Discount
  At any Orega Centre in our network.
• Reception Team
  Our Centre Team will meet and welcome your clients - even the unexpected ones!
• Business Lounge Access
  At any Orega Centre in our network.
• Free Refreshments
  Free Tea and Coffee for you and your guests at any Orega Centre in our network.
• Free WiFi
  At any Orega Centre in our network.

So practically there are some bits and bobs that I benefit from.



Speaking of costs, there is 1 more thing I think about right now.
I've got a car on hire purchase for both personal and business use as I used it when was employed. Now that I am self-employed, does it also come into my expenses (monthly instalments, business insurance and maintenance) - Naturally according to how much I use it as some of it is still used for private life.

Sincerely,
Michał

 

[MartinCivil]

With the car you cannot put the costs as an expense. You can pay yourself based on the number of business miles you do.

https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-

 

[Drogowit]

Thank You for a reply Martin, now it is all clear to me.

 

[STDFR33]

With the car you cannot put the costs as an expense. You can pay yourself based on the number of business miles you do.

https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles-

You can put the running costs through as an expense, as long as they are suitably adjusted for private use for tax purposes.

 

[Drogowit]

Thank You for a reply STDFR33.

So basically if I have maintenance cost of say 100GBP for using the vehicle, of which about 30% of car usage would be for business, then I can claim 30GBP as an expense. Thanks for claryfing.