In Sandra Annette Carter v HMRC [2018] TC6862 the FTT found that an accountant’s use of home claims were excessive. There was no evidence to show business use of three rooms, and the claim was reduced to one room.

  • The accountant was investigated by HMRC: they subsequently forced her to close her practice.
  • She claimed expenses for Working from Home on the basis that her accountancy practice used three rooms.
  • During the course of their enquiries it was noted that she had claimed tax relief for working from home for two businesses.
  • HMRC raised assessments for underpaid taxes and penalties for error and mistake.

On appeal, the accountant provided no evidence of actual use for her home.

The tribunal considered the wholly and exclusively rule and found no exclusive use of the home as office, however it reduced the claim to allow a proportion of the costs to cover use of a single room as an office.

Ueful guides

Self employed: Working from Home

Self employed: Converting part of your home for use as an office

Use of home calculator

Directors: Working from Home

Directors: Converting part of your home as an office

Employer/employees: Working from Home

External links

Sandra Annette Carter v HMRC [2018] TC6862