Whether you’re a contractor, sole trader, in partnership or own a company, if you use your home for business, you can claim a portion of your household expenses.
What can you claim?
You can claim 100% of expenses that are solely for business purposes e.g. business phone line, stationery
For the rest, you can claim the proportion of your house that you use for work for example, if your house is 100 square metres and your office is 10 square metres = 10% of the total area. So you can claim 10% of expenses not solely for business.
Here are some household expenses that you can claim a proportion of:
- Electricity, water & gas
- Security monitoring
- Mortgage interest or rent
- Insurance – house & contents
When can you claim these expenses?
Expenses such as business phone can be paid directly from your business bank account on a monthly basis for example. Household expenses are calculated on an annual basis and included in your annual year-end accounts.
How to claim your Home Office Expenses
So you should now be in the know, as to what is a YEAH or NAH when it comes to home office expenses. If you’re an SMYD client, the next step is to complete our Home Office Calculation Form
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