Day 16: Working From Home Allowances - Your Self-Assessment Guide

With just 16 days until the self-assessment deadline, it's crucial to understand how to properly claim your working from home expenses. Whether you're a full-time home worker or splitting time between home and office, maximizing your allowable expenses could significantly reduce your tax bill.

Simplified vs Actual Costs: Making the Right Choice

HMRC offers two methods for claiming working from home expenses. With the deadline approaching, you'll need to decide which method works best for your situation:

The Simplified Method

If you're looking for a straightforward approach with minimal paperwork, the simplified method allows you to claim £6 per week (£26 per month) without providing detailed evidence. This equals £312 for a full tax year of home working. For many self-employed individuals, this offers a hassle-free solution as the deadline nears.

The Actual Costs Method

For those willing to maintain detailed records, claiming actual costs might result in a higher tax relief. This method requires calculating the proportion of your home running costs used for business, including:

• Heating and electricity costs for your work area
• Internet and telephone charges for business use
• Water rates if your business requires water usage
• Home insurance if business use is included

Equipment and Office Space

Beyond regular running costs, don't forget to claim for:

• Office furniture and equipment purchased specifically for business use
• Computer equipment and software
• Stationery and printing costs

Essential Record Keeping

With the 31 January deadline fast approaching, ensure you have the following documentation ready:

• A log of your working hours and days spent working from home
• Copies of relevant utility bills and receipts
• Calculations showing the business proportion of shared costs
• Floor plans or documentation showing your work area if claiming for space

Common Pitfalls to Avoid

When rushing to meet the deadline, watch out for these common mistakes:

• Claiming for the entire cost of utilities rather than just the business portion
• Including mortgage payments or rent (these aren't typically allowable)
• Forgetting to keep supporting documentation
• Missing out on legitimate business equipment claims

Need Urgent Assistance?

With just over two weeks remaining until the self-assessment deadline, our team at MCC Partners can help ensure you're claiming everything you're entitled to while maintaining compliance. Contact us today at 01474 619 990 or email This email address is being protected from spambots. You need JavaScript enabled to view it. for expert guidance on optimising your working from home claims.