Entrepreneurs based in some of the UK’s most fertile regions for home-based start-ups have been reminded not to miss out on a number of money-saving tax breaks to allow their ‘at-home’ businesses to thrive.
The Association of Certified Chartered Accountants (ACCA) has appealed to places like Wandsworth and Cornwall, which each have among the highest proportion of home-based start-ups in the UK, to take advantage of tax relief to solidify their businesses.
The ACCA estimates there are 356,823 home businesses in London, with Wandsworth housing 32,840 of them – equating to almost a fifth of the borough’s entire workforce.
Similar figures show there are 254,377 home start-ups in the South West, with Caradon boasting 20 per cent of its workforce as ‘at-home’ businesses.
Chas Roy-Chowdhury, The ACCA’s head of tax, wants to raise awareness of the types of tax relief available to busy home businesses.
"The rise in start-ups from the home is good news for the economy, but whether these home-based entrepreneurs are aware that, for example, they can deduct tax for the electricity they use in the room where they do most of their work is another matter," he said.
"Unless you are trawling through HM Revenue & Customs’ (HMRC) website, you may not know that even costs of hiring a cleaner can be deducted from your tax bill for the work they have done in the ‘business room’ of your home."
Aside from cleaning charges, tax relief is available to home-based business owners on utilities such as electricity, water, heating and even decorating expenses. However, home-based start-ups are also advised to check what exactly is claimable before leaping in head first.
"It is not always straightforward and it will not always be clear what can and cannot be allowed. Getting it wrong could land you in hot water with HMRC, so it’s worth going over what is allowed and what isn’t," added Roy-Chowdhury.
Call us today on 0800 0523 555 or complete our enquiry form and we will identify your nearest TaxAssist Accountant in order to book a FREE initial consultation