What to Provide Your Accountant to Calculate Your Use of Home Allowance

To ensure your accountant accurately calculates your 'Use of Home' allowance, you'll need to provide them with specific information and documentation. Let's break down the key categories you'll need to address:

1. Mortgage Interest or Rent

• If you own your home: Provide your latest mortgage statement detailing the interest portion of your payments.

• If you rent: Provide your rental agreement and recent rent payment receipts.

• Additional details: Specify the total number of rooms in your home and which room(s) you use exclusively for work.

2. Heating and Electricity Bills

• Provide copies of your recent utility bills (gas and electricity).

• Estimate the percentage of your home's energy usage attributed to your work area.

3. Broadband Bills

• Provide copies of your recent broadband bills.

• If you had broadband prior to working from home, estimate the percentage of usage related to your work.

4. Council Tax Bill

• Provide a copy of your latest council tax bill.

• Specify the number of rooms in your home and which room(s) you use exclusively for work.

5. Mobile Phone Bill

• Provide copies of your recent mobile phone bills.

• If claiming a portion of your bill, estimate the percentage of usage related to work calls.

• If you have a separate work phone, provide the contract and bills for that phone.

6. Magazine Subscriptions

• Provide receipts or invoices for any work-related magazine subscriptions you've paid for yourself.

7. Contents Insurance

• Provide a copy of your contents insurance policy.

• Estimate the percentage of your home's contents covered by the policy that are used for work purposes.

8. Cleaning Services

• If you hire a cleaner specifically for your work area, provide invoices or receipts for their services.

• If you clean your work area yourself, estimate the time spent and any associated costs (e.g., cleaning supplies).

9. Office Room Repairs & Maintenance

• Provide receipts or invoices for any repairs or maintenance in your work area.

• This can include repainting, fixing electrical outlets, or repairing furniture used exclusively for work.

Additional Considerations

• Record Keeping: Maintain organised records of all your expenses, including receipts, invoices, and any supporting documentation.

• Accuracy: When estimating percentages or providing other details, be as accurate as possible.

• Communication: Keep an open line of communication with your accountant. If you have any questions or are unsure about what to provide, don't hesitate to ask.

By providing your accountant with this information, you'll enable them to accurately calculate your 'Use of Home' allowance, ensuring you receive the tax relief you're entitled to. Remember, claiming allowable expenses can significantly reduce your tax bill, so it's worth investing the time and effort to gather the necessary information.

Disclaimer: Tax laws and regulations can be complex and change frequently. This article provides general information and should not be considered as professional tax advice. Always consult with a qualified accountant or tax advisor for personalised guidance.