Not to mention missing the rush hour commute<\/a>.<\/p>\n And studies have found that working from home increases staff morale and productivity, another win for both employer and employee.<\/p>\n There could also be tax breaks in it too…<\/p>\n If you have to work from home on a regular basis, you may be able to get the tax back from some of your bills – but you can only claim for things to do with your work, such as business telephone calls or the extra cost of gas and electricity for your work area.<\/p>\n Unfortunately, you can\u2019t claim for things that you use for both private and business use though, so getting tax relief on rent or broadband is out of the question..<\/p>\n And if you’re claims are no more than \u00a34 per week (\u00a318 per month) you don’t need to provide any records. If you’re claiming for more than \u00a34 per week though, you\u2019ll need to provide evidence of what you\u2019ve spent.<\/p>\n If you\u2019ve offered to a work from voluntarily and as part of a homeworking arrangement with your employer, they may still contribute towards your expenses but don\u2019t have to.<\/p>\n If your employer contributes up to \u00a34 per week (\u00a318 per month) towards your expenses, you won\u2019t need to provide receipts.<\/p>\n If your employer contributes more than \u00a34 per week you will need to be able to show what you\u2019ve spent to get tax relief.<\/p>\n And you won\u2019t have to pay tax or National Insurance contributions on the amount you get from your employer.<\/p>\n If you work at home voluntarily and your employer doesn\u2019t contribute to your expenses, you can\u2019t claim tax relief for what you\u2019ve spent.<\/p>\n It was brought to our attention in the comments section that there are certain tax implications when it comes to selling your house if you designate a room in your home purely as office space, with no personal uses – there’s more on that in this article from The Telegraph<\/a>.<\/p>\n When using a room at home as an office, HMRC allows you to deduct two types of costs from your taxes:<\/p>\n Although, HMRC is generally quite vague when it comes to defining exactly what a room is, describing it simply as a \u201cnormal living space”, the general consensus seems to be that kitchens, bathrooms and hallways don’t count as rooms. This will leave most with just the living room, the bedrooms and the room you use as an office count as rooms for tax purposes.<\/p>\n In theory, you can claim a deduction for two rooms, and may have to if you’re a photographer who needs a separate ‘dark room’ to develop photos. But unless this, or a similar reason, is the case, then you should only claim for one room. Don’t claim for two rooms if you just switch for a change of scenery now and then.<\/p>\n This handy infographic has a breakdown of exactly how you can work out those work from home expenses…<\/p>\n And here’s a helpful video on self-employed expenses…<\/p>\nIf you have to work from home<\/h2>\n
If you offer to work at home<\/h2>\n
Capital Gains Tax<\/h3>\n
What costs can you deduct from your taxes when you have a home office?<\/h2>\n
Fixed costs<\/h3>\n
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Running costs<\/h3>\n
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What counts as a ‘room’ you can use as a home office?<\/h2>\n<\/div>\n
How to calculate work from home expenses<\/h2>\n
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