Tax Deductible charges

#1

Hi All, Relatively newly VA as of last Sept. One Q that I wanted to ask was how you calculate your WFH costs and balance that against your tax? I use FreeAgent, so I would I enter this as a monthly expense say for my council tax, electricity etc obvs pro rata’d and per room.
Would be great to understand how many of you calculate this please? :slight_smile:

#2

Not an accountant but there are a couple of different ways to calculate this - and it can have an impact on your tax liability if you are planning to sell, so I would have a chat with an accountant about this…

#3

Thanks Caroline, will do as I need to get this right :+1:t2:

#4

The simplest way is through Simplified expenses really - you can look it up on gov.uk. A set amount you can claim according to how many hours you work. Going the other way and claiming a percentage can lead to you having to pay business rates etc (worst case scenario).