Tax and good news don’t always go in hand. But here’s an exception!
You can get tax relief on a proportion of home bills e.g.
Mortgage interest** or rent
*You may have to pay business rates rather than council tax if you used a significant area of your home so look out!
**And yes we do mean interest, not capital.
Things to look out for:
You have to use a ‘reasonable method’ of apportioning these costs e.g.
Say you’ve got 4 rooms in your home, and 1 of them is your office
Your electricity bill for the year is £400, you can claim 1/4 so £100 as an expense on your tax return.
If you worked roughly one day a week in the office, you should technically only claim 1/7th of the £100 so £14.29
So give it a go, apportion your costs and see how it compares to using simplified expenses – see our other blog about this!