Finance experts advise that those working from home and self-employed individuals may be eligible to claim a portion of their heating and household bills against their tax bill. You can potentially reduce your tax burden if you're a sole trader operating from home and list heating as a business expense. Similarly, those required to work from home, even partially, might qualify for tax relief on additional household costs. However, strict eligibility criteria apply, with HMRC providing detailed information. Tax relief is available for work-related expenses and specific situations where working from home is mandated, not chosen. The amount claimable depends on factors like hours worked from home and the proportion of shared expenses used for business purposes.
Finance experts are advising those working from home and the self-employed that they might be able to claim a portion of their heating and household bills against their tax bill. If you're a sole trader operating from home, you can list your heating as a running cost for your business, potentially reducing your tax bills.
Tax relief can be claimed if you're required to work from home due to job requirements or lack of an office from your employer. However, you cannot claim tax relief if you choose to work from home, including situations where your employment contract allows remote work or when your employer's office is full.
The tax regulations specify that workers cannot claim for items used for both personal and business purposes, such as rent or broadband access. As for the amount you can claim, you have two options: either £6 a week or the precise amount you've spent. “For example, say there are five rooms in the home and one is used as a full-time office, studio or place of work, with a yearly electricity bill of £1,000. Dividing that by five means it would be possible to claim £200 as an allowable expense. "
Business Taxes TAX RELIEF WORK FROM HOME SELF-EMPLOYED HOUSEHOLD EXPENSES HMRC
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