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Sam
Sam, Accountant
Category: Tax
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what tax deduction can I claim my lock up which is used

Resolved Question:

what tax deduction can I claim for on my lock up which is used for storing my tools and plant equipment and I work in there it is 3500 square feet with office above .I brought it 9years ago and I have never claimed for it
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Hi

Thanks for your question - I am Sam and I am one of the Uk tax experts here on Just Answer.

Could you advise

1) Whether you are self employed, employed or own a limited company

2) What costs you have actually incurred through storage and working in this lock up heating, electricity mortgage interest ???

3) Do you use this lock up for any aspects of your personal life - and when did you start to use this for business reasons

Thanks

Sam

Customer: replied 2 years ago.

self employed builder, I have used it since I purchased it for work and storage of personal property

I made doors and other timber structures for my work.

I paid £90,000.00 for it as it was sold with the house it is next door to the house

my mortgage for the house and lock up are combined I pay £400.00 a month interest on both

electric £140.00 per quarter

no gas

water for toilet and cleaning van £50.00 per quarter

Expert:  Sam replied 2 years ago.

Hi Steven

Thanks for your response

As this is not used soley for business purposes, then you can claim a flat rate of exepenses, whcih is determined by the time you actually spent working in this lock up but not anything for the interest or electricity to cover any heating or lighting costs or water costs.

If the weater comes form the main home - and you are metered and its possible for you to identify the costs you incr to wash the van - then make a claim for this. and £50 a quarter sounds reasonable

But back to the lock up -

.

So the amounts you can claim according to the hours you use this room for business per month are

  • 25-50 hours: £10 per month
  • 51-100 hours: £18 per month
  • 101 hours or more: £26 per month
  • Let me know if I can advise further on this matter

    Thanks

    Sam

    Customer: replied 2 years ago.

    sorry to bother you again what can I claim for the office above and if I take out the personal stuff which I can store in my garage then could I claim for mortgage interest and electric

    Expert:  Sam replied 2 years ago.

    Hi

    Thanks for your further questions

    You can then claim a % - you need to add up all habitable rooms - excluding bathroom and kitchen and hallway in main home.

    Then say this is 6 rooms, then you can claim

    1/6th if just the office is fully and wholly business use or 2/6ths if both the lock up and the office are used, and wholly business use.

    Then when you have established this 1 or 2/6th amount, then you restrict it to reflect the actual time you spent there.

    (And you can claim this against the heating and lighing, mortgage interest)

    Note that as you then plan to claim a % of the moergage interest - then you do have to consider capital gains as and when you sell this property in the future, and also are indicating to the local council that business rates should be charged on this wholly business element of the property -

    Let me know if you have any further questions - but it would be appreciated if you could, in the meantime , press accept ot rate the level of service I have provided.

    Thanks

    Sam

    Sam and other Tax Specialists are ready to help you
    Customer: replied 2 years ago.

    can I claim anything for previous years I don't claim on the mortgage interest I don't want to go into capital gains and can I still claim for heating and electric

    Expert:  Sam replied 2 years ago.

    Hi Steven

    Those earlier tax years will have to be per the flat rates advised, as both the lock up and office were business and private useage

    Thanks

    Sam

    Customer: replied 2 years ago.

    can I put of my business overdraft as a tax liability on my tax return if I decide to close my business

    Expert:  Sam replied 2 years ago.

    Hi

    Thanks for your new question - I have sent an additional service request as Just Answer works on the basis of one question per post and as you are now on a new topic, I have suggested a new amount for this

    Thanks

    Sam