If you are self-employed and working from your home office, don't miss out on claiming allowable expenses for working from home.
There are two ways you can calculate this:
1. You can claim a flat rate
2. Actual costs of your household bills proportion
New paragrapThe working from the home flat-rate allowance for the 2021/2022 tax year are:
* £10 - if you work 25 -50 hours per month
* £18 - if you work 51 - 100 hours per month
* £26 - for 101 and more hours
If you worked different hours each month, you can use different rates. For example:
You worked for 55 hours for the first 6 month
6 x £18 = 108
You have worked only 35 hours for the rest of the year
6 x 10 = 60
You can claim a total of £108 + £60 = £168
This method is super simple and you don't need to keep any receipts, but...
! Always check if it would be more beneficial for you to claim the actual costs!
! you can only use it if you work more than 25 hours per week
! Keep invoices for your phone and internet, because you need to put a claim for them
Stationary, printer ink & cartridges, postage, computer software, telephone & broadband.
When it comes to expenses for repairs, be careful, the expenses can be only whole and exclusively related, so if you are working from the dining room and decorating it, you won’t be able to claim the fancy new furniture 😊
It may be time-consuming to gather all the receipts for your expenses for working from home, but it's worth the while, and it will reduce your taxable profit and avoid these
5 mistakes when scaling your business.
Testimonials
Rea Moores Creates
Starting up my own business I had no idea how much would be involved in preparing the tax at the end of the tax year and how much time bookkeeping would take. Fortunately Jana was at hand to help me. She guided me through all the steps needed for her to submit the documents to the tax office, answered all the questions I asked, and put me at ease. I would recommend brush up accounting to anyone that needed this service.
QualClean Ltd
I have engaged Jana as the permanent accountant for QualClean Ltd as my accountant of 7 years advised me, he was retiring.
In the last 12-18 months I have become a little disorganised due to workload, illness and several other external factors. This has resulted in me not staying on top of my accounting, bookkeeping and invoice payment chasing.
In less than 2 months, Jana has very efficiently organised me and has set me up with a whole new system to aid my efficiency. Moreover she has been really proactive in pointing out issues in my bookkeeping and most importantly, my invoice chasing. This has resulted in recovering monies that I had no idea I was missing!
I thank Jana for her highly fastidious approach and care and I have no hesitation in recommending her to colleagues and friends.
Nikki Ayton
Brush Up Accounting was recommended to me by a mutual friend and Jana has been like a breath of fresh air. I needed someone approachable, professional and experienced and I got all three.
Jana was excellent at communicating with me and she has always got back to me within 24 hours (if not sooner). She has made an onerous task a lot simpler by explaining the process step by step.
I highly recommend working with Brush Up Accounting.
