Have cut & pasted the topic:-


The BKN Blog Back to list Use of home as office 05 Jan 2012 6:30 PM |

BKN (Administrator) Question: My clients energy bills have soared since they started using a room in their home as the base for their company's business, as they have to have the heating on all the time. I've heard that my clients company can pay up to 1/3 of their gas bills tax-free, is that true?

BKN Answer: Your clients company can pay them (as the company's employee) £3 per week, £156 per year tax free, for working at home and no evidence has to be provided to support that payment.


If your client can prove their heating bills increased because of them heating the property while working there, when otherwise it would be empty and not heated, then your clients company can pay that extra heating cost to them tax free. However, if the Taxman asks, your client will need to provide copies of the gas bills for a period before they worked at home compared to a similar period when your client worked at home, to prove the increase in costs. The Taxman may also want to see a schedule of the days they work at home and days when your client work at customers' premises. This type of claim is referred to as 'use of home as office' which can also cover other costs incurred in running their business from home.