HMRC are keen to restrict expenses that can be claimed when using your home as an office and there are one or two tax complications that you need to be aware of.
Here is HMRC's guidance:
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Running a business from home - GOV.UK www.gov.uk Running a business from home - insurance, business rates, expenses, tax allowances |
Here is a link to guidance on potential Capital Gains Tax ramifications:
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Tax when you sell your home - GOV.UK www.gov.uk Relief from Capital Gains Tax (CGT) when you sell your home - Private Residence Relief, time away from your home, what to do if you have 2 homes, nominating a home ... |
Capital Gains Tax
CGT may not be an issue in practice if the pro-rated gain on the business dedicated part of your home is very unlikely to exceed your combined annual CGT tax free allowances.
Running costs
In addition, when allocating home running costs to the business, HMRC only gives tax relief for the costs that would not otherwise be incurred in those cases where no part of the home is exclusively set aside for business use.
Pro rating running costs based on the number of rooms
One potential problem with allocating the home running costs on a room by room basis is that it reinforces the idea that part of the house is dedicated to the business.