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Allowable Expenses for working from Home Self Employed

17 - 04 - 2020

Allowable Expenses for Working from Home

 

Self Employed

Simplified Expense

 

HMRC allow a Simplified expense of a flat rate based on the hours a self employed person works from home each month. The simplified flat rate is only available if you work 25 hours or more a month from home.

 





 Allowable Expenses for Working from Home

 

Self Employed

Simplified Expense

 

HMRC allow a Simplified expense of a flat rate based on the hours a self employed person works from home each month. The simplified flat rate is only available if you work 25 hours or more a month from home.

 

The Simplified Expense Flat Rates for 2020/21 are:

 

Hours of business use per month

 

Flat Rate per month

25 to 50

£10

51 to 100

£18

101 and more

£26

 

The flat rate does not include telephone or internet expenses. You can claim the business proportion of these bills by working out the actual costs.

 

Limited Companies and Limited Liability Partnerships cannot claim simplified expenses.

 

Actual Cost

 

Alternatively you can calculate the actual costs such as:

 

  • Heating
  • Electricity
  • Council Tax
  • Mortgage interest or rent
  • Internet and telephone use

 

You will need to find a reasonable method of dividing your costs between business and personal. You could work out the size of the work area in proportion to the rest of your home and time apportion the amount of time you use the area. You would then need to apportion the individual bills to assess any additional cost. You would need to keep these calculations and relevant documents as HMRC may challenge the calculations and the amounts claimed. HMRC may also look at the bills before and during the home working period to assess any increase in costs.

 

If you would like to discuss any of the issues noted above please contact us on:

 

01244 625 500 or 01978 364 000

contactus@foremansllp.com

Whilst all due care and attention has been taken in the preparation of these notes no liability

can be accepted for any omission or item contained therein.

Foremans LLP

April 2020



 

 

 

 

 

Foremans LLP Umberlla
Foremans LLP