If your company is based at home or you perform duties as a director from home, then you may consider expensing your home office costs.<\/p>\n\n\n\n
If your company is based at your home, or you perform a substantial amount of your fee earning duties as a director or as a company employee from your home, then you may consider charging your company for the use of a home office.<\/p>\n\n\n\n
If you genuinely undertake substantial fee earning work from home, then we suggest you establish a license agreement with your company, and rent your home office space out to your business (see Option 3). If you carry out only administrative duties from home, then we suggest you charge your company the HMRC agreed home office rate of \u00a326 per month (see Option 1).<\/p>\n\n\n\n
As a quick summary there for three options for you:<\/p>\n\n\n\n
Option 1 – \u00a36 per week<\/strong><\/p>\n\n\n\n If you work from home from time to time, or carry out administrative duties from home, you can claim \u00a36 per week from your business to cover the running costs associated with working from home. There is no need to keep receipts for this.<\/p>\n\n\n\n Option 2 \u2013 Home office running costs<\/strong><\/p>\n\n\n\n If you feel Option 1 does not adequately reflect the true costs you incur in working from home, then this option may work better for you as it will reimburse you for your actual home running costs. On the upside, you will get a larger tax deduction for your company if your costs are higher than Option 1, and on the downside there is more onus on you to keep good business records relating to these costs.<\/p>\n\n\n\n