Do you run a business from home? Then this affects you

The tax deductibility rules around running a business from home changed on 1 April this year.

Under the new rules, the premises for a home business have to be a separately identifiable part of the house, which is used mainly for business. This does not mean it has to be an actual, closed off room.

There will be a choice of methods for calculating a claim for use of home:

  • Continue to make your calculations in the usual way.
  • Determine the percentage of mortgage interest and rates (or rent) used for business. Inland Revenue will then provide a per square metre rate to use to cover the other costs.

If you need more detail, contact us.

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