I heard from someone that you can claim a part of your rent costs as an expense if you're working from home.

I work 100% from home and live in a flatshare with other people. I pay rent for my room £800/month.

From what I see here: https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home it seems to me that those are the costs for utilities only. My utilities are included in the rent.

How much % can I claim from my rent costs?

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    In the United States, the IRS has limitations as to what can be classified as a "home office". In most situations it is difficult to claim rent/mortgage payments as a legitimate business expense since you'd be paying it anyway --- again, in the US. – Scott Nov 12 '18 at 2:24

There are all sorts of considerations that you need to factor in...

I'd suggest that, as you are renting a room, you'd have difficulty in meeting the "wholly and exclusively" test for part of it...

Secondly, you'd need to check that your rental agreement doesn't proscribe running a business... many do!

I'd suggest you can legitimately claim the flat rate allowance...


You would need to have an accountant if you are earning enough for this to make a real difference. Since you MUST be able to show invoices (or similar proof) you are working over 25 hours per month and at that level the rate is a £2-3 saving in tax on the £10 per month allowance (simply not worth the effort as that should amount to about 15 minutes extra work time without all the heartache). If you are LTD its different as you let accountants worry about how much its worth under a different scheme and then consider it a very small discount against their fees.

There are other consequential liabilities that may be flagged up as a result of claiming the premises being used for a business see https://www.gov.uk/run-business-from-home If you are claiming the premise is for business how does that compare with your rental terms, home and trader liability insurances ?
If you have 100% honoured those commitments and have spare time after your 100% hours to make a claim then do so.


Separate facilities

In general, that works only if you can separate a part of your home that's wholly and exclusively used for business. E.g. if you have a separate "office room" then you might argue that the rent for that space is a business expense.

However, if you have a room where you both work and sleep in, that's not solely for the business, and thus you can't claim it as an expense.

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