WORKING FROM HOME? CLAIM YOUR HOME OFFICE EXPENSES
f you have a home office for your business, you should be able to claim some of the running costs. It’s important to be aware of what you can and can’t claim, and the record-keeping involved in making a claim.
How does it work?
In order to claim, the space you use must be used primarily for your business. This doesn’t mean setting up at the kitchen table from time to time, it means having a dedicated space that you work from. If you are selling online and storing stock, you may also be using other spaces in your house for storage or stock maintenance. If you are making or creating products, you may be using other areas like your kitchen or workshop.
To understand what percentage of your home is being used for your business, you should work out the area in square metres. Once you have the number, you can use this to calculate what you’ll claim. So, for a 150 square metre home, where 15 square metres are used for the business, 10% of the home is dedicated to the business.
You can then claim a corresponding portion of your household expenses against your business income.
This could include:
house and contents insurance
mortgage interest if you own the home
rent if you are renting the home.
Keeping track of expenses
Make sure you keep a record of all your expenses and retain your records for seven years. It’s important to keep your personal and business expenses separate. Consider using online accounting software so the paperwork is kept in good order.
We can help you review your home office expenses to make sure these are included when you claim.
Talk to us, we can help.