Q: I’ve recently moved to being self-employed and am working from home. Are there any tax reliefs I can get?
A: Self-employed individuals working from home can claim part of their heating and household bills as business expenses. It is worth noting that employees required to work from home may also qualify for tax relief, but not if they simply choose to do so.
Only work-related costs (e.g. business phone calls, gas/electricity for your work area) are allowable. Items with mixed personal and business use (e.g. rent, broadband) are excluded.
You can claim through Self-Assessment tax returns (deadline: 31 January) and can do so for the current tax year and the previous four years. There are two approaches:
- Flat rate: £6 per week, or simplified expenses (£10-£26 per month depending on hours worked – minimum of 25 hours).
- Actual costs: Proportion of bills based on business use (e.g., 1/5 of a £1,000 electricity bill if one of five rooms is used as an office = £200 claim).
- If you would like help calculating your tax relief, please get in touch with us to discuss your personal circumstances in more detail.