How much of my rent can I claim back in tax?
Answers:
HMRC will normally accept a proportion of the household heat and light based on one over however many rooms there are excluding bathroom and kitchen. So, if you have one living room and two bedrooms and use one room for business, you would claim one third of the rent, heat and light. No deduction is due for rent, water and Council Tax as these would be payable whether you were working from home or not.
EDIT You don't take kitchen and bathroom into account as you have to eat and go to the loo whether or not you use part of the house for business and these are not business activities!
Add your square footage of your place then measure the square footage of the office room,divide total footage by room footage this will give you a fraction then break the fraction into %, this is the % of rent that is deductible along with % of utilities etc. Make sure all your ducks are in a row as this is kind of a red flag to IRS. The room must be strictly business & have no other purpose.
Visit HMRC Website
Many helpful leaflets, forms and calculators to use or download
As stated before your allowance would depend on the % of the area used for office space. However have a chat with the taxman as obviously toilet and kitchen facilities should be taken in to account. Also a round sum allowance has some advantages when it comes to selling the property in regards to capital gains.
Best option agree a round sum amount with tax inspector, they are not all ogres but usually commonsense people.
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