The benefits of running your business from home
People who run their own business from a home office are set for tax savings by being allowed to claim mortgage interest, council tax and home insurance as expenses, according to new guidelines from Her Majesty's Revenue and Customs (HMRC).
Although business owners have long been able to deduct home expenses from overall tax bills, many faced losing out to Capital Gains Tax when they sold their home.
But the new guidelines mean a proportion of fixed costs can now be claimed against income.
Certain conditions apply but conditions basically state that expenses can now be claimed as long as they are directly related to working from a home office.
The news adds weight to the home-working idea, with today's technology making it easier than ever to run a business from home.
VoIP and business speed broadband make home offices efficient and cost effective and the installation investment can be processed as a business expense on the tax form.
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