Use of Home Office – New Rules – from 1 April 2017 for March balance dates

From the beginning of the 2018 tax year the rules for claiming for use at home are changing. 

The premises have to be a separately identifiable part of the house, which is used primarily for business purposes. Some people are interpreting this to mean a room has to be set aside exclusively for business. This is not exactly correct. It would also seem a garage is a separately identifiable part of the house. If this is being used primarily for business, it could also come under a use of home claim. However, if it is a double garage, it might be difficult to show the use is primarily for business if it houses a private car as well as a business one. There will be a choice of methods for calculating a claim for use of home. 

 

Choice 1 

Continue to make your calculations in the usual way.

 

Choice 2

Determine the percentage of mortgage interest and rates (or rent) used for business. Inland Revenue will then provide a per square metre rate to use to cover the other costs. You may wish to change your questionnaire for the 2018 tax year to accommodate the new rules.

 

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