Q. I am a sole trader and I run my business from home. I am using the cash basis for preparing my accounts for tax. Can I claim expenses for running my business from home?
A. Under HMRC's 'simplified expenses' regime, if you work more than 25 hours a month from home, you should be able to claim flat rate expenses based on the number of hours you work. Current rates are as follows:
- between 25 and 50 hours worked per month: £10 per month
- between 51 and 60 hours worked per month: £18 per month
- 101 hours or more: £26 per month.
If you claim the flat rate, you don't have to work out the proportion of personal and business use for your home, e.g. how much of your utility bills are for business.
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