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

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