The world is a strange old place right now. Many of us are ill. Keyworkers are continuing to keep the country running. In times of furlough and worrying about finances, lots of us have started working from home in order for businesses to continue. Some good news is that you might be able to claim tax deductions as you settle into this new normal. Let’s take a look at just what you could get.
Usually Work Elsewhere?
If you usually work elsewhere, out of the house, perhaps at the business premises, you need to ask yourself why you’re working at home. If the business you work for has asked you to, that is perfect, we can help. If you’ve chosen to work from home instead of the office or if you’ve already been reimbursed for having to work at home, there’s not a lot you can do.
Think about what you’ve had to buy in order to work from home. You might have had to set up an at home desk, with extension cables, maybe a monitor, possibly a desk chair. Then there’s the extra electricity and heating needed for being at home all day long in your new ‘office’, alongside business phone calls and broadband. These are the things you’ll be able to claim for.
The Self Employed
If you’re self employed you’ll know that you have to complete a self assessment tax return every year. Whilst you’re declaring how much you’ve earned, you can also input details of allowable expenses you’ve paid out during the last twelve months.
These work at home expenses include rent or mortgage interest, broadband and phone use, heating and lighting and council tax. This means that whilst you might earn £25000 in a year, if you have £5000 of allowable expenses, you’ll only get taxed on £20000. See what you can claim for by going to the official government website or speaking to your bookkeeper.
Above all, during this time, stay safe and look after yourself and your family.