Home Office Expenses

Do you work from home? If you said yes you might be able to claim a deduction for it.  Working from home has really increased over the last decade or so. In the past it would only be for certain industries, for example my father has been a sales rep all his career so I was very accustomed to seeing him work from home everyday. Nowadays all roles can have a factor of time spent working at home, sometimes just for the convenience and work life balance. What can you claim? In working out what to claim on your tax return we look at two different types of expenses. Occupancy expenses or running expenses. If you do a few hours a week from home, we will focus on the running expenses. If you run your business out of home we can take a longer look at the occupancy expenses.  The main way to claim a deduction for home office is by using the set rate per hour of 45c. This covers your heating, lighting and other running costs of your home. To be able to claim this deduction you must have a diary of 4 weeks demonstrating how you use your home office. This will then be averaged to make the claim using the hourly rate.  Other related expenses you might be able to claim are internet costs, telephone expenses, purchase of computer equipment or other equipment, printing and stationary, and repairs to computers or equipment. Your tax agent will discuss each of these expenses once its established you can claim for working from home. Don’t be afraid to discuss these in detail with your accountant as it often highlights different deductions you can or cannot claim.  If you need any further information about Home office expenses, get in touch today.