Sole Trader & Mortgage

E

essjay

Guest
Quick question.....

I have a normal PAYE day job and I do freelance work from home in the evenings and weekends.

Can I claim a portion of my mortgage payments as an expense the same as done with electricity and gas?

Assuming my house is 800sqft and the office is 100sqft and I work approximately 20 hours a week, can I claim 6% (12% of house size / 2 (half a week)) of my monthly mortgage? Or is it a case where there are 6 rooms in the house, one being the office so I claim 16.5% / 2 = 8.25%?

Do I have to declare and pay rates?
 
only the interest might be eligible -- plus it might affect your TRS and future CGT if you sell
 
Can this be done? - Yes, at least in theory.
Should you do it? - Personally, I believe that in most cases it isn't worth the hassle.
 
Perhaps. If it means that I have to pay rates, CGT or effects TRS etc then it's not. Still... If it's worth up for €800 a year it might be worth investigating
 
By my calculations, you would need to be paying €27,000 in mortgage interest, and paying a marginal tax,prsi & usc rate of 50%-odd to generate a tax saving of €800 p.a. Am I missing something?
 
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