Example of claim for home expenses

Diarmuid works from home and has no other business premises. He uses a spare room from 9am to 1pm and then from 2pm until 6pm. The rest of the time it is used by the family. The room represents about 10% of the total area of the house.

The costs including cleaning, insurance, water rates and mortgage interest are about €8,000. 10% = €800 and 8/24 of the use by time is for business, so the claim could be €267.

Electricity costs total €1,500, so 10% is €150 of which 8/24 = €50.

In addition, a reasonable proportion of other costs such as telephone and broadband costs would be acceptable.

The key to Diarmuid’s claim will be that he keeps the records to prove the figures and proportions used.

Please note there may be CGT consequences in the future if Diarmuid decides to sell his house

Any queries on same give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie