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Can I claim part of my rent as a business expense?

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Can I claim part of my rent as a business expense?

Postby I'd Rather Play » Wed Jun 28, 2017 2:26 pm

I'm self employed and have been filing my own self assessment tax return for the past 15-20 years.

During that time I have been a home owner (with a mortgage). While I claim for every single tax deductible expense I can, I decided never to claim expenses for that part of my house that I was using as a business/studio. I've done this because there could have been tax issues when I sold it regarding the capital gain related to that part of the house that was claimed for business use.

Now I'm currently renting, this isn't an issue. I have rented a two bed flat, with one of the bedrooms being used as a workspace/studio.

Am I right in assuming I can claim the rental cost of this extra room as a taxable expense? As I'm the sole resident, I can clearly prove than the extra room is wholly and exclusively used for business. The amount I would claim is the market difference between a one and two bed flat in the area.

What do you think?
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Re: Can I claim part of my rent as a business expense?

Postby artzmusic » Tue Jul 04, 2017 1:47 pm

I'm in the States so what's here isn't applicable but wanted to mention not to overlook a percentage of the utilities as well for a deduction.

Here we write off the percentage of square footage used for business and the same percentage for utilities.

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Re: Can I claim part of my rent as a business expense?

Postby ManFromGlass » Tue Jul 04, 2017 2:05 pm

My friend not only claims square footage as office/studio space but gets even more detailed right down to claiming a small percentage of toilet paper. The polite way to say it is that he is "detail oriented" rather than, erm, anal about it. Pun intended.
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Re: Can I claim part of my rent as a business expense?

Postby Brian M Rose » Tue Jul 04, 2017 6:58 pm

I hate to be a spoilsport but bear in mind a couple of things here in the UK:
If you are renting, you may be breaking the terms of your lease if you are running a business. You need to let the Landlord know.
You may (most probably will) be liable for business rates on the proportion of the premises that you are using for business purposes.

It would be sensible, if you are running a business, to consult an accountant. That way you can avoid some very expensive mistakes. That, in any case is what I did. And I am still here to tel the tale.
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Re: Can I claim part of my rent as a business expense?

Postby The Red Bladder » Wed Jul 05, 2017 1:36 pm

and full water and sewage costs! Possibly backdated by two years!
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