Q: How much of my home office repairs can I claim as a business expense?
A: I work as a consultant full-time in the NHS. I also do some sole practitioner work involving online private video consultations for new patients (my own self-employment), and I also visit other private clinics as a sole practitioner consultant. I have an office in an outbuilding at the back of my garden where I do the video calls and also research and prepare my work, etc. I share this with my wife, who has her own equipment, etc. (half the office is her work, and half is mine) and who also works from home at times. Half of the outbuilding is an office, half is a gym. I have recently had to carry out repairs on the floor, roof and outside render, and my business was not able to operate during that time. I am hoping to claim expenses for 50% of the costs of repairs, as half of the building space is allocated to business, but also, as my wife occupies 50% of the office, can I therefore only claim 50% of the office repair expenses?
Arthur Weller Replies:
The general rule is that only expenses that are ‘wholly and exclusively’ for your business are allowable. But in your scenario, HMRC expects you to apportion costs on a ‘fair and reasonable’ basis between your business and other use. See HMRC’s Business Income Manual at BIM47815 and BIM47820. I am assuming that your repairs were purely to maintain or restore the existing structure, with no element of improvement or extension; see BIM46915. Since half of the building is used for private use (i.e., a gym) and half of the office space is used for your business and half is used for your wife’s business, the result is that you can claim 25% of the costs of doing the repairs against the profits of your self-employed business.
