Tuesday Tidbit – Helping with Cost Claiming from HMRC

This week one of our clients asked about how much he could claim back as he was using his spare room in his new house as his new office space for his recruitment agency.

The Director believed that he could claim the costs based on the square footage of the room compared to the whole property size and then charge a percentage of the mortgage, gas, electric, council tax and insurance as an expense.

TBOS however explained that HMRC only allows a person to reclaim £18 per month as an expense for use of home as office unless the Director could prove that the costs for the house had dramatically increased by using it as an office.

TBOS explained that this was hard to prove and could launch a HMRC investigation so it was recommended that they only reclaim the £18 per month which they agreed.