New Ltd company working from home question

[FrM]

We have just setup our own Ltd company and will be working from home. We have a question on what we can claim with regards to our office - home.

I have been told that for example if you have a 4 bed room house and one room is the office you can claim 1/4 of the following...

Mortgage
Electricity
Gas

Is this correct ?

Also how is this claimed ? As an expense ?

 

[Nige]

You are allowed claim a "reasonable" amount of your household expenses. 1/4 of a four bedroomed house seems excessive, as, presumably, the office, won't make up 1/4 of the square footage of the house.

Remember too, that you will not qualify for principal private residence relief on that proportion of the house you claim to be the office ie if you claim a 1/4 of the expenses now, 1/4 of a future gain on disposal would be subject to CGT.

 

[ButtermilkJa]

/...1/4 of a four bedroomed house seems excessive,...

...1/4 of a future gain on disposal would be subject to CGT.

I agree that 25% seems excessive, but I don't think there is any liability to CGT in future, unless you are actually charging your Ltd. Co. 'rent' for use of the fourth bedroom. If you are only claiming 'Office Heat & Light' expenses then as far as I know, there is no liability to CGT in future sale of the home.

I'm not an accountant so I'm open to correction on this?