Empower Your Business

Accounting is Just the Beginning

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Slash Your Taxes: Claim Your Home as a Business Expense

Claims (or rather not claiming!) for use of home as office result in a lot of confusion for taxpayers, even those with accountants. Here are some of the more common questions which arise in practice:

I have business premises, Can I still claim use of home?

Yes most certainly providing you are doing some work at home and are careful to only claim what is reasonable.

My spouse already claims use of home. Does that mean I can’t?

No, just apportion the claim between you based upon the area you each use.

Some of my rooms at home are not used exclusively for business so does that mean I can’t claim them for use of home?

Not at all. Just ensure you claim only part of the rooms, perhaps based on a time apportionment.

My accountant says it’s not worthwhile claiming use of home. Is he right?

That depends on whether he or she is paying the additional tax which will arise if you don’t claim!

I work from my shed in the garden. Can I still claim use of home?

Yes you can, but you may have to apportion your expenses differently e.g. if for example you bought the shed later than the rest of your property omit the mortgage interest.

My mate John says my home has to be commercially zoned before I can claim use of home?

Not so, that’s completely irrelevant.

Jack at the pub doesn’t claim use of home because he hasn’t got a separate entrance for his business at home.

Well Jack needs a new accountant as that doesn’t matter either!

Don’t pay tax unnecessarily, get help with your claim for use of home for business.

If you have any questions regarding your use of home for business  or upcoming tax bill, join the ABAC community on Facebook. You’ll be able to ask all your questions and get real-time, practical answers -at no charge!
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