WAHMs (Work at Home Mums) GET BOOST FROM NEW TAX ALLOWANCES
Friday, June 20th, 20081,400 home businesses are started every week in the UK and ‘mum’ businesses contribute an estimated £4.4billion to the economy, and now HMRC are putting their weight behind the growing trend, with new tax breaks for people working at home.
New guidance in HMRC manuals, published on their website, contain examples of the level and nature of home expenses that can be claimed. There are two areas of particular interest: specific expenses and mixed use of premises.
A new element is termed ‘fixed costs’ and includes mortgage interest, Council tax and home insurance, and for the first time HMRC are allowing a proportion of these costs to be claimed against the income of your business if certain criteria are met, such as: (more…)