Posted on 14th May 2019

When the lines between work and personal life are blurred, ensuring that you understand all your claimable expenses can be a tricky business.

Many successful companies start out as sole traders, working from a home office – this could take the form of your spare room, workshop or just a computer on the kitchen table. Whether or not you want to remain as a self-employed individual or have ambitions to become a limited company, it’s essential to understand the claimable expenses related to your home office from the very start.

You can claim tax relief on any expenses that are directly related to your business. But when you use resources that are shared between work and home life, the distinction is less clear-cut.

For example, you might use the same mobile phone or land line for both your business and your personal communication. If you use your phone for work 50% of the time, with the rest of the bill being generated by personal calls and usage, you can only claim for 50% of your phone bill.

When it comes to the expenses incurred by physically running a home office, this gets even more complicated. You can either work out the actual proportion of your utility bills, insurance premiums etc that are attributable to your home office, or – as long as you work from home at least 25 hours per month – you can use HMRC’s simplified expenses for the self-employed.

This flat rate – which doesn’t include telephone or internet expenses – starts at £10 per month for those working from home for up to 50 hours.

At JNR Accounting, we do all the hard work for you and ensure that you’re claiming all the allowable expenses to which you’re entitled, while staying within HMRC’s rules. To find out how we can support you, allowing you to concentrate on growing your business, get in touch with our accountant, Vasantha Dheerasekara, today.

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