Author Archives: Robert Shenkman

Use of Home as Office – Tax Breaks

After COVID, the amount of people who now work a few days a week from home has skyrocketed. Such is the quality of conference call software such as Teams or Zoom that we can communicate with colleagues without the stress of a morning commute. With working from home therefore becoming an option to many employees, there also comes an inevitable cost to the employee. But is this expense available to everyone?

How can I go about claiming this?

You can put in a claim for working from home expenses within your self assessment tax return if you are self employed (meaning you in theory have no fixed place of work), or alternatively you can find out more via your government gateway account if you are in full time employment. You must have proof from your employer that you are required to work from home to justify receiving any expenses for working from home.

If you are an employee with hybrid/remote working arrangements you cannot claim tax relief because in the eyes of HMRC, you have the option to use your employers office/work space. This even extends to if your employer has an office but you cannot work there because it is at full capacity! Talk about cracking down!

Get in touch to enquire about whether you are entitled to claim expenses for working from home! It could make all the difference to your next tax return 😊

Capital Gains tax on the sale of property

After 6th April 2020, the reporting rules for the sale of residential property changed. Previously you could simply report the sale of a residential property within a self assessment tax return, but upon the changes in HMRC reporting rules, now any individual who sells a residential property must report this to HMRC within 60 days.

A Capital Gains Tax return is required, even if you are not registered for self assessment! This can be quite a headache, especially for those who are not comfortable with operating a HMRC Government Gateway account, or even for those unsure on how to calculate the profit on the sale of their property.

As accountants, we can streamline this process. From understanding the purchase price, considering all potential legal fees and finally reporting any potential gain to HMRC by creating a Capital Gains Tax for UK Property account – we can guide you through this arduous task.

Moreover, it is important to act with speed once a property sale completes, with the 60 day window for reporting the sale leaving little time to calculate any potential improvements that you might have made to the property over the years. As accountants, our role is not only to consider which repairs to a property might be considered to be ‘improvements’, but also to reject any expenses which are simply repairing an existing area of the house – such as a repair to an existing window frame.

In essence, at Shenkman Accountancy Services, we have expertise in helping with the reporting of any potential Capital Gain on the sale of residential property. Get in touch to see how we might be able to assist!