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Does this look correct?

20/01/2018 15:00:18
We live in a house with 8 rooms,2 of which are used for business for 10 hours each week.
Is the calculation to find out what percentage of household bills we can claim for correct:

365 days x 24 hours = 8760 hours in a year
1% is therefore 87.6

10 hours x 52 weeks = 520 hours

Therefore we can claim for 87.6 x 520 = 17% of certain bills including council tax, elec, heating, property insurance and council tax?
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Does this look correct?

22/01/2018 08:23:07
Please bear with us as we need to seek technical guidance for your post
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Re:Does this look correct?

22/01/2018 12:42:49
Hi

I can confirm that the calculation to work out how much you can claim is by means of apportioning the expenditure. There is guidance at

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim47815

There is also a simplified method which can be used, here is the link to the relevant section on our website,

https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home

Kind regards
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Does this look correct?

22/01/2018 17:06:09
Thank you,
I have visited both of those resources over recent weeks and not found the guidance I need to give me confidence that 17% is a reasonable deduction.Simplified expenses are not appropriate in my circumstances having done the HMRC online test.

The Manual is helpful however there isn't an example like ours. The nearest is the man who uses one room ONLY for business purposes which works out very neatly at 5% deduction. We use two rooms PARTLY for business purposes, 10 hours each week. I need confidence that I am being reasonable claiming 17%. Can anyone confirm that please? When I have telephoned HMRC I just get referred to read guidance documents,none of which answer our situation. Many thanks.
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Re:Does this look correct?

23/01/2018 11:48:48
Hi

Under the Self Assessment provisions I am unable to confirm categorically that this would be the correct percentage for you to use. It really is up to you to calculate the percentage you think is appropriate using the guidance already supplied.

Kind regards
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Does this look correct?

24/01/2018 21:27:34
I appreciate that and would like to take responsibility for but surely given the circumstances someone will confirm I am on the right track with the calculation? If not it's like a puzzle but I don't have all the clues! I just want it to be correct.
If you can't confirm this can you at least provide me with the email address for a senior manager as I need to escalate this and quickly.
Thank you
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Re:Does this look correct?

25/01/2018 10:31:39
Hi

I referred your enquiry to a senior technician. This is the reply. I hope this helps

Kind regards

"Within the Self Assessment system you calculate your expenses and keep a record of how you do so and we may enquire into your figures at a later date. We cannot tell you what figures to use. Please keep a record of how you arrived at the calculation.

Unfortunately we are unable to confirm if your calculation is correct however working it through 17% of your household bills seems high for 10 hours a week. I’m not sure where your 1% figure comes from? The basic calculation would be to take 2/8 of you total costs (based on the rooms you use). You then apportion that for the number of hours i.e. divide that figure by 8760 and multiply by 520.

Please see example 4 at https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim47825 as this is closest to your situation."

The bottom line is that it is the taxpayers responsibility to determine how much relief is due and claim accordingly.
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Does this look correct?

26/01/2018 12:53:38
This is SO helpful - thank you.
We now understand the calculation to be 2/8 (number of total rooms used for business purposes) x total allowable expenses = Y
Then Y x 2/24 (hours used for business purposes) = Z
Z = allowable deduction

This resource is invaluable - many thanks again
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Does this look correct?

26/01/2018 13:46:47
Gill,

Really appreciate your comments, we are glad we can help, if you keep posting we'll keep helping !!!

This message was edited 1 time. Last update was at 26/01/2018 13:47:44

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