Are you the sole director of a limited company and working from home – what expenses can you claim?
As a small business accountant this is one of the questions that I am asked the most. People want to make sure that they are claiming everything that they can.
Working from home allowance
You have two choices for this – you can use the flat rate allowance approved by HMRC or do a more complex calculation to work out your actual costs.
Flat rate allowance
In this scenario you are effectively an employee of the business. You can claim £4 a week without needing to keep any records to support this.
Calculation
Alternatively you can choose to claim a proportion of the costs that are not for personal use or have a dual purpose. Costs that could be reclaimed include:
- heat and light (you would need to work out the proportion of the home that contains the office and the proportion of time that it uses the surface and claim that proportion)
- business phone calls
- dedicated business broadband
If you would like to know more, please comment below or contact us.
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