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Use of home as office


Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
tag-icon Tax Returns

Use of home as office


Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
tag-icon Tax Returns
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Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.

When dealing with someone working from home, it is important to note that although exclusive business use of part of the house may mean that it is possible to claim tax relief for more of the household expenses, it will restrict capital gains tax relief on the sale of the house. This is discussed further in the Principal private residence relief ― anti avoidance guidance note.

Normally, there will be no liability to business rates if the room(s) used for the business is also used domestically. If a significant proportion of the property is used exclusively, or almost exclusively, for business, then business rates may be payable. The council tax banding on the remainder of the property may also need adjustment. For more on business rates, see the GOV.UK website.

Self-employed

The general rule for allowing revenue expenses against

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  • 23 Apr 2024 09:01

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