Working from home - tax implications

[heavenly]

Hi there, I'm a newbie. Apologies if in wrong place.

I just need some pointers please.

There is the strong possibility that I might be offered a couple of part-time admin/typing jobs to do at home. One from a friend of mine, who is starting up his own business and needs some admin help and the other from Estate Agents that want inventory work typed up. I have been on a work break the past few months. Before that, I worked full time as a secretary for 22 years for various companies, but never at home.

What would I have to do re the tax implications re my salary. Also, my spare room would be an office, how does that work re heating, electricity, paper, cartridges, phone calls, new pc software etc.

I have always worked full time and never at home before so this is all completely new to me.

Any pointers would be much appreciated.

 

[Lemurz]

[broken link removed]

 

[putsch]

I think that revenue leaflet is more relevant for an employee working from home - I think the poster is inquiring about a self employment situation?

 

[dooloo]

Seeing as your two customers are both in business, i assume they are registered for VAT. If so, then you should register for VAT also so that you can reclaim VAT on your expenses, such as pc, print cartridges etc.

In any case, you need to register for income tax via the Form TR1 [broken link removed] You can also register for VAT with this form.

Any related expenditure such as computer costs, and portions of your heating and phone bills can be deducted from you income figure at the end of the year when you come to calculate your taxable income. You will have to try and estimate the % of your phone and light & heat bills which are business related and use that % going forward.