With more than half a million people starting their own business last year – and latest research showing that almost two-thirds of mothers with children under the age of ten are considering starting up their own business from home – an Ilkley accountant is urging local people who work from home to ensure they claim vital tax benefits.
With full-time annual childcare costs for two children now reaching £11,702, almost half of mothers surveyed by Direct Line for Business, believed they would be better off financially if they started a business from home as well as benefitting from more flexible working hours.
Julia Forrester, who runs TaxAssist Accountants, said:
“While setting up your own business can be a daunting prospect, with the cost of childcare spiralling, it can have significant benefits, offering more flexible working and the potential to be more tax efficient – as long as you know what you can claim.
“Over 70 per cent of new businesses are now started from home and with better wireless connections and the use of smart phones and tablets, many local small businesses continue to be run from home.
“Knowing how to manage cash flow is essential and business owners should ensure that they benefit from any support available.
“HMRC will allow you to offset a share of some household bills to reduce the tax you pay, based on the layout of your home and the amount of time you spend there.
“These can include mortgage interest, insurance, rent, utility costs and rates as well as a percentage of phone line rental, the cost of business calls and expenditure on internet connections.
“Coupled with savings on premises and transport costs, working from home can be very effective for many small business owners.”
TaxAssist Accountants Ilkley is a local business, operating across Ilkley, Addingham, Ben Rhydding, Burley and surrounding areas, providing tax and accountancy advice and services purely to small businesses.