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Working from home

  • 167 posts
  • # 72621

Hi

If you have a person working from home and there is a household electricity bill - how much of this bill can be offset and how would you show this on the person's accounts.

Also is there established percentages for depreciation charges?

Any help appreciated.

Regards

Acorn

  • Member
  • 495 posts
  • # 72638

I depends if you have registered part of your home as an office - the rules on this are complex!

My understanding is somewhat out of date but is as follows - someone will correct me I'm sure if I am wrong :)

If you want to claim part of the household bills as expenses of business then you need to have an agreement with your council that you work from home using a percentage of your home exclusively for work - a home office.

The percentage is calculated on how many living spaces there are in your house and what percentage of the living space you use is set aside as work only space. You also need to show if the space allocated is used 24/7 or only for part of the day.

say you have a 3 bed house with lounge, dining room and kitchen - a total of 6 living spaces - and you use 1/4 of your dining room as your office - allowing your kids access to the space after school as a homework desk. You routinely work evenings after the kids are in bed (so you use heating and lighting).

suppose further that you work 40hrs a week.

If your electricity bill for one week was £100 you can posibly claim 1/6  x 1/4 x 40/168 (hours used) which is about £1 and you now need to consider that the council may charge you office rates for that space!

In otherworks - don't bother. 

  • Member
  • 495 posts
  • # 72639

that said if you have a whole room exclusively for work the calculation is easier - the above senario on a 7 space house with one room exclusively for work would mean you could claim approx £15 a week as an expense...

What would office rates be?

It still may not be worth the hassle. 

  • 167 posts
  • # 72674

thanks Theresa

  • 1159 posts
  • # 73400

Hi Acorn,

You could have a look at this short guide for those working from home:

http://www.kmbookkeeping.co.uk/guide-home-office.php 

Kris

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