Trying to find out what you can and can’t claim back as a self-employed can be a minefield. Having a good accountant can help you save time and shave money off your next tax bill. Here are some of the most common questions we receive from our clients regularly.

1. Can I charge rent for my business when working from home?

Technically, as a self-employed person you are the business, so you can’t charge yourself rent for operating in your home. However, if you are living in a rented accommodation, you can claim a proportion of the rent you pay to your landlord.

2. Can I claim money back for my mortgage if I work from home?

You can claim a proportion of your mortgage interest only, but not the capital repayment.

3. What other costs can I claim for when working from home?

There is a whole variety of costs you can claim for in proportion depending on your circumstances. For example, just to name the few:

– Council Tax

You can claim a proportion of your Council Tax bill. However, depending on how many hours you use your home for business, you may have to pay business rates rather than council tax.

– Heating
– Lighting
– Insurance
– Security
– Telephone and broadband costs. This is based on the proportion of use for the business, you can also claim for percentage of your monthly line rental.
– Repairs.

The general rule is that the more this repair is connected to the exact parts of the house you use for your business, the more you can claim for. If the repair affects the whole house i.e replacing a leaky roof, you can claim for a proportion of that cost. You can’t claim for home improvements or for repairs that are not directly connected to the part of your home you use for your business.

4. How can I check how much I am able to claim?

There are two ways to calculate this. If you work from home over 25 hours per month, you can use the simplified calculator for guidance which gives a flat rate based on the amount of time you spend working from home per month.

– 25-50 hours: £10 per month
– 51-100 hours: £18 per month
– 101 hours or more: £26 per month

Bear in mind that the simplified calculator only covers the basics such as gas and electricity. If you’d like to add other costs like security, council tax, repairs or mortgage interest, you will need to work these out separately.

You can also calculate the exact cost by taking under consideration factors such as how often you work from home and what is the proportion of your work space to the size of your home. Simply put, how many rooms do you use for business purposes and how many days/hours per week/month?

We are always happy to help and advise our clients on tax deductible expenses. Our experience and knowledge can save you lots of time as well as money. Each case is different and therefore may vary in outcome so it’s always worth checking before you decide to claim for something you shouldn’t or pay tax on things that could partially be classed as expenses.

Give our team a call on 01752 895648.