If you have an office in your home you could be missing out on tax savings and reducing the amount you actually pay to HMRC.
Generally speaking if you work from home in a dedicated office then you can offset a proportion of your household bills against your tax bill. This applies whether you are a sole-trader, part of a partnership or a Limited company and the bookkeeping for these costs is relatively simple.
Typically you can claim a percentage of your heating bills, landline, broadband, mortgage interest, rent, council tax and water rates. The amount you can claim depends on the number of rooms you have in your home excluding your kitchen, bathroom and toilet.
Let’s say you have 2 bedrooms and 2 reception rooms and you use one of these as an office; you can offset 25% of your household bills mentioned above. If you pay £1000.00 a month on these bills, that’s £250.00 that you can offset against your tax bill and a massive £3000.00 a year. If you use a bookkeeper they should not only be aware of this but they should be keeping records for you.
To find out more about our bookkeeping services, workshops and training, please call Cain & Co on [eeb_content]020 8087 1341[/eeb_content], or email us at email@example.com.