TaxAdministrationHome tax guidance welcomed

Home tax guidance welcomed

Guidelines have finally been issued setting out what tax the self-employed can deduct when they work at home, a bone of contention in the tax profession for years

HM Revenue & Customs
updated its manuals to provide details of specific expenses including cleaning,
heat, light and power, and broadband usage.

The move has been welcomed by advisers who have called for guidance on the
topic to clear up inaccuracies and inconsistencies.

‘There was no guidance before, so it was more what your local inspector
thought,’ said Anne Redston, personal taxation specialist at CIoT.

‘People got used to having accountants and local tax officers decide it
between themselves. HMRC is trying to standardise practice; perhaps because of
too generous or overzealous inspectors, results were variable. It also depends
on what your accountant knew.’

Grant Thornton tax partner Mike Warburton said advisers and clients were
often given ‘very different answers’ on the deductions from HMRC, which had
caused disputes.

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