Celebrating the end of the yesterdays tax deadline with some advice for your upcoming tax return. If you’re self employed knowing what tax credits and exemptions that apply to you can be extremely difficult. An area many businesses get scrutinized and fined on in their tax return is the ‘Use of Home as Office’ claim.
In order to calculate the allowable portion of the expenses you occur due to working from home you should use a flat rate based on the hours you have worked from home each month. You can only use the simplified expenses if you work for 25 hours or more a month from home.
The flat rate does not account for telephone or Internet expenses and so these should be treated as a separate entity.