Can freelancers and the self-employed claim expenses for working from home?
Yes, freelancers and the self-employed can claim expenses for working from home, including household bills and office equipment. This is because working from home is considered a business expense.
However, there are some rules that you need to follow when claiming expenses for working from home. For example, you can only claim for the proportion of your household bills that relate to your business use. So, if you use 10% of your home for business purposes, you can only claim 10% of your household bills.
You can also claim for the cost of office equipment that you use for your business. This includes things like computers, printers, and desks.
If you work partly from home and partly in your employer's office, you can still claim expenses for working from home. However, you can only claim for the proportion of your expenses that relate to your home use. So, if you work from home for 25% of the time, you can only claim for 25% of your expenses.
Here are some examples of expenses that you can claim for working from home:
Heating and electricity
Internet and phone bills
Rent or mortgage payments
Council tax
Business insurance
Office furniture and equipment
Stationery and printing costs
Travel costs between your home and your employer's office
If you are unsure about whether or not you can claim for a particular expense, you should consult with an accountant or tax advisor.
Here are some tips for claiming expenses for working from home:
Keep a record of all of your expenses. This could include receipts, invoices, and bank statements.
Calculate the proportion of your expenses that relate to your business use.
Complete a self-assessment tax return. This is where you will declare your income and expenses.
If you claim expenses for working from home, you may need to provide evidence of your expenses to the tax authorities. This could include receipts, invoices, and bank statements.
It is important to note that the tax rules for claiming expenses for working from home can change from time to time. Therefore, it is always advisable to consult with an accountant or tax advisor before claiming any expenses.