Top 5 expenses to claim if you work from home

PUBLISHED: 10:02 27 October 2014 | UPDATED: 10:02 27 October 2014

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Expenses are costs incurred solely and exclusively for business purposes and are paid out of your gross salary rather than your net salary saving you 20% tax or 40% if you are a higher earner. No matter what size your business is you are entitled to claim expenses.

With almost 14% of the UK’s workforce working from home and nearly two-thirds of these being home workers, what exactly are you entitled to claim if you are self-employed and work from home?

To help answer this question Easy Accountancy has put together our guide to five common expenses to claim if you are self-employed and work from home.


1. Property Repairs

If you work from home and the area of your home that you use for work needs repairing, then in some cases a proportion of the cost could be claimed as an expense. The amount that can be expensed depends on the percentage of time that the area is used for business.

As a basic example, if you use your home office for work 25% of the time and the total repair costs on this room is £100 then you could claim £25 as an expense.

If the repairs are on an area of your property that is not used for your business then you are unable to claim any of the cost as an expense.

2. Utility Bills

The extra water, gas and electricity costs that you incur through working from home could be claimed as an expense.

The cost of your utility bills can either be claimed as a flat rate of £4 per week, or through claiming a proportion of the overall cost.

If you choose to claim a proportion of the overall cost the amount than can be expensed is based on the number of rooms your property has, the number of rooms that are used for business and the percentage of time that these rooms are used for work purposes.

3. Broadband

The cost of your broadband may be classed as an expense. If you use your broadband for both business and personal use, which will probably be the case if you work from home, you will need to work out the proportion of your overall cost that has been used for work purposes.

4. Phone Bill

The minutes and texts on your phone bill that have been used for business could be classed as an expense. To keep things simple some self-employed individuals find it easier to have two phones – one for business use and one for personal use – so they can simply expense one phone bill.

5. Equipment

Whatever business you are running there will be equipment costs incurred. Whether the cost is for printer ink, stationery, computer software, a builder’s helmet or hairdressing scissors, if it is solely and exclusively for the running of your business then it could be classed as a business expense.


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