Working from home - how much rent, etc. deductible?

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Tayto2

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I know, I know, I'm ten days late doing my tax returns online. Can anyone tell me if there is a list somewhere of what percentage of household bills (rent, heat, etc.) I can claim for tax relief as a self-employed person working from home? I have Googled, believe me, and feel like I'm going round in circles with the ROS site. Getting an accountant is just not feasible I'm afraid.

Many thanks.
 
A reasonable proportion would be permittable, keep your calculations in the event of an audit at a later date.

As an example for your ESB bill, you could say that 5% was used for your business - while that may seem too little, you have to think sensibly - what would a Revenue auditor allow !?
 
Hi Setanta,

Thanks for taking the time to reply. 5% seems so little, since I work about 40 hours a week at home, live alone and would not be using the utilities if I was out working in an office. Is there really no definitive list of what % is permittable out there?
 
There is no such list of percentages as each case is different. ( You might think 1/3 of ESB in an apartment is ok but what if you lived alone in a 10 roomed mansion with indoor heated pool, would 1/3 still be ok? ) You have to look at what is reasonable and justifiable.
 
Graham is right and the percentages used must suit your own individual circumstances. However this is an example of what a client of mine in similar circumstances recently used: ESB, Oil, etc 25%, Telephone land line 60%, telephone mobile 80%, internet 80%, rent 18% (area of office divided by area of house).
 
Thanks to all for the replies. I'll have to risk adding something for rent as I just can't afford to be owing the Revenue (unlikely, it was a sloooow year).

Much appreciated.
 
He didn't say or suggest he was going to falsify anything. He quite clearly meant that ,despite your advice about rent, he would declare part of it as a business cost.

I assume,Tayto2, that you are paying rent. If you own your apartment then Setanta has a point about complications.
 
No I have no intention of falsifying anything. By 'risk', I didn't mean I'd chance my arm. I live and work in a one-bedroomed flat. I think it's quite reasonable that I should be allowed to claim some percentage of rent; I don't own the place. I'm just surprised that there aren't more definite guidelines about it, or possibly there are and I just can't find them. I understand the actual percentage claimed could vary widely from case to case but surely either you can legally do it or you can't?

Tayto (female!)
 
If you are renting and claiming already the rent relief tax credit then any additional claim for rent on self-assessment may have complications. As mentioned, I would tread very carefully on this issue.
 
tayto2 - there are no definite rules from Revenue on this- not even good guidance.

However, if you intend to continue what you are doing for some foreseeable time ,and if you can't afford a good accountant, then -strange as this may seem - you can actually ask Revenue.

I've done this a few times when I've submitted my self assessment. (Mind you I didn't leave it as late as you.) Only once did they disallow something (quite small, and I half-expected it).

I honestly told them that I was not sure about this-or-that and expense/income but I put it down and said sorry if I am not correct etc etc grovel grovel. On the Self assessment form there is a box you tick when you wish to express doubt about something, and you enclose your letter expressing doubt with the form.


So, submit what you think are reasonable costs and see what happens.
Sadly, the advice above about minimising your expectations is valid.

Anyway, you won't be shot if you ask them and if you don't go bonkers on claims.

But get that form in now !
 
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