SE32820 - Other expenses: home - household expenses - expenses that are not deductible

The following expenses are not deductible in any circumstances.

Water rates

Water rates are a flat charge. So no part of the charge can be said to be incurred exclusively for business use. Where a water meter is used, see SE32815.

Mortgage interest/endowment premiums

Mortgage interest is a cost of borrowing money and not a cost of providing business accommodation. The case of Baird v Williams (71TC390) confirms that it is not a deductible expense. For the same reason endowment premiums relating to the mortgage are not deductible.

Insurance

No deduction is due for the cost of insuring the property or any of its contents. It is not a cost that is incurred in carrying out the duties of the employment. It is an expense to save a later potential expense.