What Expenses Can I Claim When Working From Home
It is a good basic question; “What expenses can I claim when working from home” The answer is simple when differences in practice are recognized. Freelancers have different rules compared to employees, and not all employees are treated equally. In this section, I analyze the demands of independent workers.
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Introduction – resolution and duality
It will be extracted from the textbooks that some expenses are incurred with the private subconscious intention and, therefore, are not allowed at all (known as the “fatal duality”), and at least some others may have been incurred. Part of a private resolution, but you still have the right to claim a crime.
8 Processing costs you can claim working from home
certainly, you spend three hours a night looking for houses you never buy and you’ll see what everyone is doing on social media. But don’t forget all the time it is being used to send quick emails, search for contacts online, administer the HMRC website, etc. Proportionally calculate the amount of time spent doing business online and divide your total Internet bill accordingly. A convenient website tracking tool like Rescue Time or TimeStats (Chrome browser only) could help you measure the amount of time you spend.
Your home office
while we have everything digital in everything, don’t forget your laptop, desktop or printer. If you have paid for these items and have ever used them for business (write emails, confirm appointments, and make copies of documents), you can make a claim. It is useful to know that you can claim purchased goods before you are legally registered as a freelancer.
These are known as pre-negotiation expenses, and the general rule is that you can claim anything you have purchased in the last seven years that you would qualify as a tax-deductible if you had bought them and you traded. Then, if you registered to operate in 2016 but you bought your computer in 2014, you should qualify (but always check with HMRC if you are not sure).
Your electricity and gas bill
remember that you could not do your job unless the lights were on and your house was arctic. How will you calculate how many of your profits will be charged? Light bulbs are not as easy to count as your energy consumption every day. As a general guide, you can first find out how much time you spend doing business, to take into account how much time, each day, your company benefits from the use of electricity and / or gas. Then you will have to look at your house. If you are heating your entire home but only work from one room, you can not only claim the usefulness of a room. Make some sums and save some money due to your daily bills.
Your telephone bill
of course, you should remember your telephone bill, especially if your job involves consulting clients on calls or expert advice. The easiest way to pay work calls is to have a separate work phone. However, if you prefer to hold and transport the phone only, use the login of your mobile phone to find out exactly how much of your phone bill should be applied to work calls (it is good practice). This also if you need the billing you sometimes have, your customers pay for their time).
Do you go to networking evenings? Hold events for the purpose of your marketing business? Save all receipts, give up all expenses and write down each lunch: it is tax-deductible. However, do not obstruct the line with business entertainment. This is not covered unless HMRC has explicitly stated, for example, the annual Christmas work party.
Your municipal tax
this is correct: this is a business expense if you are working from home for part of the time, and again it must be calculated proportionally.
Your house and your office
Home is the place where the heart is. Sometimes the place of office and occupation is (and it’s not always easy to make that mix). You can claim part of your mortgage interest as a business expense. Recalculating how much of the property you use for commercial purposes. The same goes for renovators. If you rent it from a landlord, you can get a proportion of that rent. So if you can calculate the amount used for commercial purposes only. If you are a landlord that acts as a sole trader. You may not be able to do it because you cannot rent it.
Do you provide products or services in your car? You can use a simplified flat rate to calculate. The amount to be claimed as your car van or motorcycle costs. If you do not want to calculate it (as long as you do not claim the vehicle as capital allocations). Remember the latest about everything that has to do with self-employment and claim costs Always check with HMRC or a qualified accountant who specializes in self-employed business accounts.
Commercial costs can be a fierce area. Especially if you are self-employed and affected by the lines of home and work. You know that you are entitled to a certain amount of cost to recover a tax claim. But how long does it last? What expenses can I claim when working from home? Some costs are clearly cut (for example, the types of work groups that can be recovered). If you are looking for something you don’t use for a job. You may be wrong. However, if you use something for your business even part-time it is almost certain that you can claim the cost. It mainly requires calculating the proportional time dedicated to the use of the item or service for work purposes.