Skip to main content

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

Posted Thu, 24 Aug 2023 20:22:33 GMT by SKL111
I am a sole trader and VAT registered and operate my business by working at home. My questions are: 1. Am I able to claim a certain ratio (say 25%) of the home expense, such as rent , utilities , service charge as my business expense in my tax return? 2. Am I able to reclaim the VAT portion of the above expense (such as 20%VAT of the service charges) , and if so, the ratio same as that in (1)?
Posted Wed, 30 Aug 2023 08:22:38 GMT by HMRC Admin 19

If you are VAT registered and use your home for the running of the business and the making of taxable supplies then you are entitled to recover a portion of this as input tax. The apportionment you make would need to be fair and reasonable. You can see information here:

Please see the guidelines below:

Input tax effect on subsistence, staff entertainment and domestic accommodation expenses

You are able to claim a proportion of the household bill against your self employment. The costs claimed must be wholly and exclusively in the performance of your business. You can see guidance here:

Expenses if you're self-employed

Thank you.

Posted Sat, 02 Sep 2023 20:18:53 GMT by SKL111

You must be signed in to post in this forum.