Use of Home as Office

The Guernsey Income Tax Office is looking to implement new restrictions on those wishing to claim expenses for using their home as their office.

In order to now make a claim an individual has to have notified both their insurance company and the States Cadastre office that they are using the house for their business. The tax office will want copies of the house insurance and a letter from the Cadastre confirming that the home has been reviewed.  

If there is not a room specifically set aside for the business then the claim is likely to be disallowed.  

If there is a particular room set aside then the expenses will be pro rated. In the past they have been prorated on 1/number of rooms in house x total expenditure. From now on there will be further restrictions. The Tax Office will want to know how many hours a week the room is used for the business and the expenditure will be allowed on that basis. A further reduction will also be made for when the client is on holiday. 

It may well be that with all these restrictions it is no longer worth claiming.

The Brehon Tax Department will review each case on an annual basis as part of the year end tax review, however if you would like advice before your year end then please contact either Cheryl Brache or Sarah Eley.

Unlike some firms who charge an inflated rate for this type of advisory service, we are pleased to say that our rates will stay the same as for our normal tax advice.