Here at ACG we know all about the joys of working from home and of course what we can claim for in terms of tax relief for our home office.
Actually, we don’t specifically work from home, rather THE SHED at the bottom of the garden. It means that the commute takes all of 3 seconds flat. Plus, Max and Sam, our Canine Companions, love the fact that they have access to the garden, at all times.
Our client base does consist of a considerable number of sole traders who work from home. Apart from the obvious benefits such as no commuting, flexible working patterns, tea and coffee on tap, and, if you really want to push the boat out, working in your pyjamas, there are expenses that can be claimed when you use your home (a room in your home) as a home office.
Being a Sole Trader, also known as a One Man Band, we recognise that you need as much help as you can get and by claiming as much as you can in terms of tax relief, you keep your tax bill down as much as possible. (Always a bonus!)
The kind of expenses you can claim, include utilities, repairs, insurance, council tax, and rent or mortgage interest. These can be apportioned on estimated usage for things like telephone and broadband, and on the number of rooms and time that they’re used for other expenses. Alternatively you could claim the HMRC approved flat-rate deduction (the simplified deduction).
As your accountant, it really is our job to save you money wherever possible and to make sure you can claim everything that you are entitled to in terms of tax relief. If you are not sure what you can claim for or would like to have a chat about this and other ways we at ACG can help, please get in touch.