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bigduckontax, Accountant
Category: UK Tax
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Hi. If someone works from home as a sole trader. (Online related

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Hi. If someone works from home as a sole trader. (Online related business activities) Can she/he record the full rent and utilities as expenses in the books?
Hello, I'm Keith and happy to help you with your question.

No, only a proportion for the actual room(s) used.

General guidance is:

Repairs (but not improvements)
Utility bills

Customer: replied 2 years ago.

Hi Keith,


So if the house has 4 bedrooms and one living room. How much can be deducted as expense if the rent is €900 per month.

I would suggest GBP 180 would be a reasonable assessment of the sum allowable. An HMRC Inspector would be unlikely to quibble with that, one fifth of the rent for a 5 room residence.
The figure I quoted is, of course, a monthly one.
Customer: replied 2 years ago.

Thanks Keith. I assume the rules are the same for Ireland as the business is in Ireland not in the UK.

The Irish Revenu system advises the following data is required in calculating a profit:

At the end of the accounting period, you will need to have details of:

Your business takings

All items of expenditure incurred, such as purchases, rent, lighting, heating, telephone, insurance, motor expenses, repairs, wages etc.,

Any amount of money introduced into the business and its source,

The amount of any cash withdrawn from the business or any cheques drawn on the business bank account, for your own or your family's private use (these items are normally referred to as drawings),

Amounts owed to you by customers, showing the total amount owed by each debtor,

Amounts owed by you to suppliers, showing the total amount you owe to each creditor,

Stock and raw materials on hand.

This is strikingly similar to the UK method.
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