If you work from home and are self employed or have a limited company.

If you work from home and are self employed or have a limited company.

 

If you work from home some of the time you may be able to claim a percentage of your costs for expenses below:

  • heating
  • electricity
  • council tax
  • mortgage interest or rent of the office
  • internet and telephone use

You’ll need to find a reasonable method of dividing your costs, for example by the number of rooms you use for business or the amount of time you spend working from home.

Example of a work from home calculation

You have 4 rooms in your home, one of which you use only as an office.

Your electricity bill for the year is £400. Assuming all the rooms in your home use equal amounts of electricity, you can claim £100 as allowable expenses (£400 divided by 4).

If you worked only one day a week from home, you could claim £14.29 as allowable expenses (£100 divided by 7).

Simplified expenses

You can avoid using complex calculations to work out your business expenses by using simplified expenses. Simplified expenses are flat rates that can be used for:

  • vehicles
  • working from home
  • living on your business premises

 

Who can use simplified expenses

Simplified expenses can be used by:

  • sole traders
  • business partnerships that have no companies as partners

Simplified expenses cannot be used by limited companies or business partnerships involving a limited company.

Types of expenses

You can use flat rates for:

  • business costs for some vehicles
  • working from home
  • living in your business premises

You must calculate all other expenses by working out the actual costs.

How to use simplified expenses

  1. Keep records of your business miles for vehicles, hours you work at home and how many people live at your business premises over the year.
  2. At the end of the tax year use the flat rates for vehicle mileageworking from home, and living at your business premises to work out your expenses. You can find all these on the government website.
  3. Include these amounts in the total for your expenses in your Self Assessment tax return.

 

Use the simplified expenses checker to compare what you can claim using simplified expenses with what you can claim by working out the actual costs. This will help you work out if simplified expenses suits your business, we can also offer some support with working out which way would suit you best.

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