If you run a business from home then this affects you

The tax deductibility rules around running a business from home changed on 1 April this year.

Under the new rules, the premises for a home business must be a separately identifiable part of the house, which is used mainly for business. This does not mean it must be an actual, closed off room.

There will be a choice of methods for calculating a claim for use of home:

  1. Continue to make your calculations in the usual way
  2. Determine the percentage of mortgage interest and rates (or rent) used for business. Inland Revenue will then provide a per square metre rate to use to cover the other costs.

If you need more detail, contact us.

Published winter 2017

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