Sole Trader claiming use of home
Please see our general “use of home” blog
The rules for a sole trader are more relaxed than those for a limited company. You can claim for time spent doing admin and similar work that does not have to form ‘substantive duties of employment’, and the part of your home used for your business only has to be ‘wholly and exclusively’used, (though not ‘necessarily’). What this means is that the area you are claiming expenses for must only be in use for business purposes. The rest of the time it can be used for non-business purposes, however, this must be taken into consideration when calculating the pro-rata usage.
Watch out if you’re thinking of selling!
Note: If you have a dedicated office room in your house, exclusively for work, this could reduce the Capital Gains Tax private residence exemption when the property is sold, since any part of a property exclusively used for business will not qualify for Capital Gains Tax private residence relief.