Working from home can affect your tax situation:
- Your business will be able to claim tax relief on domestic bills for the areas of the house used for your business.
- If your business is VAT registered, you may be able to claim back VAT on articles you buy for business use. Reclaiming VAT.
- If you have set aside a room solely for working in, you'll have to work out if there's Capital Gains Tax to pay if you sell your house.
For the purposes of Corporation Tax and income tax furnished holiday properties let on a commercial basis can qualify for tax treatment under the Furnished Holiday Lettings (FHL) rules. To qualify properties must be in the UK or European Economic Area and be available for commercial letting to the public for a minimum period.
Always consult an accountant or HMRC on taxation issues. See choose and work with an accountant.
Paying business rates
Business rates may be payable on domestic premises that are used for business purposes - for example if you work from home, provide bed-and-breakfast or let your house as a holiday home. See business rates and types of premises.
Estimate your rate bill to get an indication of the rates payable on your business premises.
Structure your business
Name your business
Register your business
Choose your premises
- How to employ staff for the first time
- National Minimum Wage and National Living Wage rates
- Carry out pre-employment checks
- Ensure your workers are eligible to work in the UK
- Get employers' liability insurance
- Issue a written statement of employment
- Set up your payroll and register for PAYE with HMRC