Working from home?
How much can you claim?
Did you know all self-employed people, including contractors and sole traders, can claim expenses against their income. When working from home you do not need to have an area set aside however if you do then you can make a claim for this area as long as you keep a full record of all expenses you wish to claim.
You can claim 100% of expenses that are solely for business purposes for example a business phone line. For the rest, you can claim the proportion of your house that you use for work. Whatever you claim, remember to keep a record of each item.
For example Sally works from home. Her house is 100 square metres and the office is 10 meters - 10% of the total area. So Sally can claim 10% of expenses not solely for business like a power bill. Here's some more examples from IRD that relates to Sally:
- 10% of Security Alarm Bill
- 10% of Power and Gas (Sally could claim more if she can prove she uses more for her business)
- 10% of Toilet Rolls and Hand Soap
- 100% of Magazine Subscriptions for the Business
- 10% of Mortgage Interest Payments (not the principal portion)
- 50% of Domestic Phone Line
- 100% of Mobile Phone Costs ( for business use only)
- 10% of House Insurance
- 10% of Rates
If you're working from home, make sure you claim the expenses you can. If you need any advice on expenses, what you can claim or even what to code them with give us a call on 033795338.