Use of home for business purposes – what can I claim as tax deductions?

If you use part of your home for business reasons, you are able to claim a tax deduction.

The amount of deduction claimed depends on the number of hours spent wholly and exclusively on work done by the person or employee and is as follows:

Number of hours worked (per month)                  Applicable amount

25 or more                                                                  £10.00

51 or more                                                                  £18.00

101 or more                                                                £26.00

Where business premises are used also as a home, the individual can  elect for a flat rate of deduction to apply. This is done via a private use adjustment which calculates a deduction based on total expenditure of the building less a flat rate private use element. Consideration is given to the number of people living at the same address and using it for reasons other than the purpose of the trade.

Curo Chartered Accountants

June 2013.