Re: FN-FORUM: income tax (uk)

date posted 8th January 2008 13:15

From my personal experience; the difference you'll end up paying / not
paying in tax will be minimal compared to what IR35 can do to you. When
I was investigated, they were only interested in my contracts with
clients and trying to catch me on IR35.

When that failed, they didn't even look at the accounts or receipts etc.
They spent a while trying to question my mileage claims, but that
seemed to be simply to make it look like they were really interested
when they aren't. They spent months trying to pull contracts apart and
ensnare me in IR35; but being with the PCG, they lost and gave up after
6 months. Then they spent a couple of weeks picking on mileage. Then
they gave up and moved on to some other poor soul.

I used to claim home as an office and a bit of the electric and phones.
It all seemed such a lot of hassle. Now, my company pays the
broadband in full; but I've given up bothering with home as office.
Mind you, I do predominantly work on client sites. If I really did work
from home, I guess I'd claim more.

It does seem to be a grey area though, as each accountant says different
things. So I guess there is no actual tax office suggestions? If not,
then go for as much as you feel comfortable doing. The worst they can
then do is force you to pay it back I guess?

Guy Carnegie wrote:
>
> Just wondered how people as freelancer working at home worked out tax relief on rent & utilities. I was told a while ago by the helpline to take a percentage of time spent working per week or month off rent and kind of similar for utilities (although they're obviously not always in use in 24 hours). Anyone know how much things change if you work from a spare room rather than say a living area?
>
> Cheers!
>
> _________________________________________________________________
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--
Dominic Raywood
Rubicon Computer Services Limited
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