Use of home - repairs

For the self-employed, their home has a dual purpose- you live there and you carry on some or all of your trade from there. As a result, many of the household expenses cover both business and private use.

The element attributable to the business will depend on the facts; including the extent and nature of the work undertaken from home. The part attributable to the business use should be allowable.

A proportion of the cost of general household repairs and maintenance is allowable in line with the proportion that the house is used solely for the business. For example, redecorating the exterior or repairing the roof.

Repairs that relate solely to part of the house that is not used for the business, such as decorating a room not used for the business, are not allowable. Equally if a room is used solely for business purposes then the cost of redecorating that room is wholly allowable.

Capital expenditure (for example on “improvements” to the property) is not allowable expenditure; though plant and machinery allowances may be appropriate for certain qualifying expenditure.

With a lot of areas of tax, repairs can be a complicated area so I would encourage you to seek professional advice before you enter any significant claim on your tax return. Your local TaxAssist Accountant would be happy to help.

Date published 1 Oct 2013

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.