Due to Coronavirus more people than ever are working from home - check that you are claiming the correct expenses.
Working from Home
As a home worker you can claim a proportion of your domestic utility bills based on the rooms you use in the property and time spent working from home.
For example, a property with six rooms of equal utility usage - one of which is used as a home office is in use for three days per week on average throughout the financial year. The annual domestic utility bills total £3,120 over the year (allowable bills include gas, electric, council tax, internet and mortgage interest or rent).
The allowable expense would be £3,120 divided by six rooms = £520, times three days a week = £222.86.
Alternatively, you can claim a flat rate of £10 per month where working 25 - 50 business hours per month, £18 per month for 51 to 100 business hours or £26 per month for 101 business hours or more.
Lets assume in this example that in those three working days you worked 27 hours. The total allowable expense would be £10 x 12 months = £120.
In this example, it would be more beneficial to claim based on the first calculation.
Using a good accountant can save you money as well as time.
For a free consultation on the services I can provide for your business contact firstname.lastname@example.org or call me on 07914 794744.