VAT on rent?

[danster]

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Hi,

If you work from home (rented property), and use a room as an office, can you claim back VAT on that office?

My accountant on my tax return put down 1/3 of my rent as a business expense to account for this.

Many thanks

[fizzbird]

Hi,

If you work from home (rented property), and use a room as an office, can you claim back VAT on that office?

No because yo do not pay VAT on the rent.

If HMRC ask you to justify a third of your rent as a business expense then how on Earth to you plan to explain it?
Do you pay business rates?

No - thought not!

[confuscius]

Business rents are usually exempt from VAT unless your Landlord has taken the option to tax - more complex rules!

Anyways, a short guide on general business expenses - Running a home office - can you claim on expenses? - personally, I have a retail premises and work from home and I have chosen the £2 per week option (also happens to be the Inland Revenue allowable expense level for personal taxation purposes!).

I find it quite amazing that your accountant can put down 1/3 without doing some fairly detailed computations - do not forget that YOU are responsible for YOUR returns and not your accountant!

[danster]

Ok, thank you for your help.

My accountant (with over 30 years experience), advised me to account 1/3 of my rent as a business expense as I use 1 room of 3 bedrooms as an office.

[danster]

Business rents are usually exempt from VAT unless your Landlord has taken the option to tax - more complex rules!

Anyways, a short guide on general business expenses - Running a home office - can you claim on expenses? - personally, I have a retail premises and work from home and I have chosen the £2 per week option (also happens to be the Inland Revenue allowable expense level for personal taxation purposes!).

Thank you, I'll check out that link

[tbp]

I do remember reading that if you work from home, you can claim some money back against tax although its not related to VAT and wasn't that much. But I believe you can claim back a small percentage of your rent, heating, phone and electricity costs as you are using them for business purposes.

[Kandevil]

always done it on 1 over the total number of rooms in the house not the number of bedrooms, but you might get away with 1/3 depends how much your total rent is I expect.

[Mogga]

But then using a whole room for an office has it's own implications.

[bapages]

You also need tobe careful about too much reclaimed as the local authority may also impose business rates against your property.