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taxpert
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Hi Debbie,

Thanks for your kind words. I’ve read your private message and will get back to you as soon as I can.

I just wanted to write quickly to say that way you are saying about home office running expenses is correct.

Consider two examples –

In the first somebody is an employee but for convenience occasionally takes some work home with them and uses a home study. In my opinion this would clearly be a case where it is appropriate to make a claim for heating/cooling, lighting and other running expenses based on 34c for every hour the room is used. In fact arguably (to take a conservative approach) if the room is also used by other family members at the same time and not additional running costs are being incurred by you taking work home then no claim at all should be made.

The other case is where somebody’s home a place of business. An example would be a doctor’s surgery. The area is clearly identifiable as a business and seperate from the rest of teh home and clients or customers regularly visit. In my opinion this would clearly be a case where a greater range of deductions would be available and the more appropriate method of calculation would be based on floor space. As Debbie pointed out anybody taking this route should be careful how it may effect eligibility for the main residence capital gains tax examples.

Of course many people’s personal situations will fall between the two examples i just gave. In that case I would recommend seeing an accountant (like me!),

Cheers,
Simon