Working From Home: What % of Utility Bills for Accounts?

[Foresty_Forest]

I'm a Sole Trader working full time from home, where I have my office and workshop. I've totted up my electric/gas bill, water bill, boiler service, VPN and BT bill. What % would an accountant put down as fair use for my business?

 

[Chris Ashdown]

I'm a Sole Trader working full time from home, where I have my office and workshop. I've totted up my electric/gas bill, water bill, boiler service, VPN and BT bill. What % would an accountant put down as fair use for my business?

Whilst your out of view of HMRC and the like, If you start charging for some costs, I believe, but don't know for sure, that once you start charging you may find they rate some parts of your house differently and the insurance company or landlord if you have one may take a closer look at the situation

 

[DontAsk]

I just charge the flat rate. Otherwise it's based on what percentage of the house you occupy and what percentage of use is solely for the business. E.g., a shared space will allow a lower claim than a room wholly and exclusively dedicated to the business. I don't think boiler service counts and what percentage of VPN use is business only...

 

[Foresty_Forest]

I just charge the flat rate. Otherwise it's based on what percentage of the house you occupy and what percentage of use is solely for the business. E.g., a shared space will allow a lower claim than a room wholly and exclusively dedicated to the business. I don't think boiler service counts and what percentage of VPN use is business only...

Thanks, but what is the flat rate?

 

[MyAccountantOnline]

I'm a Sole Trader working full time from home, where I have my office and workshop. I've totted up my electric/gas bill, water bill, boiler service, VPN and BT bill. What % would an accountant put down as fair use for my business?

''What % would an accountant put down as fair use for my business?'' The amount of your costs which relate to business use unless you use Simplified Expenses

The amount of your costs which relate to business use unless you use Simplified Expenses which are explained here https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home

 

[MyAccountantOnline]

If you aren't using Simplified expenses you can apportion the expenses in several ways generally based on the number of rooms in the house apportioned by the time spent working in those rooms for business purposes.

 

[DontAsk]

Simplified expenses if you're self-employed

Use a simpler calculation to work out income tax for your vehicle, home and business premises expenses

www.gov.uk

 

[Foresty_Forest]

Thanks, but what is the flat rate?

I get it now thanks: 12 x £26 = £312

 

[MyAccountantOnline]

I get it now thanks: 12 x £26 = £312

Depending on how many hours you work.

Do compare it to actual costs though - you may well find a proportion of actual costs gives a bigger tax saving.