UK General Questions (Starting a business) (UK)

[PeterJSanford]

I am in the process of starting my own business and as of yet I have not decided on an accountant for the venture. I have some basic questions...

I know that I can offset a percentage of the interest on my mortgage if a room is used for the purpose of business. I am in the process of converting one of the rooms entirely for use as an office - I expect to be in it about 40hrs a week what is seen as a reasonable deduction? Since I will do 50% of my working week in there and 24% of the week (40/168) can I claim that much back?

If I end up getting an office to use for meetings and also for staff can you still claim on your property?

I am looking at investing around £40-50k on the project (website/freelance writers/etc), I know I'll make a loss the first year again can you claim any of that back?

The last question - I'll be using writers on a freelance basis, if I pay them as such and document it, is it still expected of me to pay their NIN contributions/tax?

 

[Truemanbrown]

I am in the process of starting my own business and as of yet I have not decided on an accountant for the venture. I have some basic questions...

I know that I can offset a percentage of the interest on my mortgage if a room is used for the purpose of business. I am in the process of converting one of the rooms entirely for use as an office - I expect to be in it about 40hrs a week what is seen as a reasonable deduction? Since I will do 50% of my working week in there and 24% of the week (40/168) can I claim that much back?

You have not stated whether you will be operating as self employed or a limited company. It does make a difference.

Assuming that you are self employed, you can claim a percentage of:-

- Mortgage insurance;
- Gas and electricity;
- Rates and water rates;
- Property Insurance.

You will find more information in this blog.

If I end up getting an office to use for meetings and also for staff can you still claim on your property?

The answer is yes. Just take take with any travelling costs between home and this office. Thanks to a recent decision in a tax case, such travel expenseswould not be allowable for tax.

I am looking at investing around £40-50k on the project (website/freelance writers/etc), I know I'll make a loss the first year again can you claim any of that back?

If you are self employed and you make a loss then you will have a lot of flexibility in relieving that loss and obtaining a tax refund.

The last question - I'll be using writers on a freelance basis, if I pay them as such and document it, is it still expected of me to pay their NIN contributions/tax?

If they are genuinely freelance then you do account for their tax and NI. However, it is vital that, given you are the person making the payment, that these people are freelance and should be on the payroll for the business!