Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 08 Jun 2022 10:50:05 GMT by asafm7
Assuming I'm self-employed (sole trader), I work from home 6 hours a day, and my home is a studio apartment (1 room). What proportion of the *rent* is reasonable to claim for Home Allowance?
Posted Thu, 09 Jun 2022 13:36:50 GMT by HMRC Admin 26
Hi,


Please see information regarding working from home expenses:

Simplified expenses if you're self-employed


Thank you.
Posted Thu, 09 Jun 2022 13:58:23 GMT by asafm7
Thank you. But, as I understand, the simplified expenses don't include rent. Am I wrong?
Posted Fri, 10 Jun 2022 09:29:30 GMT by HMRC Admin 2
Hi,

You cannot claim rent for your own home as you would be required to pay this outside your self-employment.

Thank you.
Posted Fri, 10 Jun 2022 14:02:28 GMT by asafm7
Thanks. But I don't think I understand. I believe that as a self-employed working from home I can claim part of the rent, as the proportion of the flat that being used for work. It is for example says so here: https://www.gov.uk/expenses-if-youre-self-employed Quoted: If you work from home You may be able to claim a proportion of your costs for things like: heating electricity Council Tax mortgage interest or *rent* internet and telephone use You’ll need to find a reasonable method of dividing your costs, for example by the number of rooms you use for business or the amount of time you spend working from home. Am Im missing something? Please let me know. Thanks, Asaf
Posted Mon, 13 Jun 2022 08:49:54 GMT by HMRC Admin 17

Hi,
 
There is different rules if you are claiming simplified expenses as mentioned in your original query - refer to :

Simplified expenses if you're self-employed    .

Thank you.
Posted Mon, 13 Jun 2022 09:10:04 GMT by asafm7
Hello, I didn't mention the simplified expenses in my original query. You brought it up. I used the word "flat", maybe it got you confused. But it was a synonym for "apartment" ("studio flat") and not part of "flat rate"... Again, my original query: Assuming I'm self-employed (sole trader), I work from home 6 hours a day, and my home is a studio apartment (1 room). What proportion of the *rent* is reasonable to claim for Home Allowance? Looking forward to your answer. Thanks, Asaf
Posted Tue, 14 Jun 2022 06:39:53 GMT by Bella Boo
I'm not hmrc, but I believe hmrc have given you the right advice. The only time rent would be allowable would be if part of your home was solely used for business purposes (such as a therapist having a room in their home set aside and used only for counselling/therapy sessions). In your circumstances, it would seem impossible to identify any part of the rent expenditure that was incurred wholly and exclusively for business purposes and therefore no part of the expenditure would be allowable in the computation of profits. See the 2nd last paragraph here: https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim47810
Posted Tue, 14 Jun 2022 08:22:10 GMT by HMRC Admin 2
Hi,

You can find guidance here:

Expenses if you're self-employed

In particular the section headed "if you use something for both business and personal reasons"

Thank you.

You must be signed in to post in this forum.