A Comprehensive Guide to Claiming Home Office Expenses as a Business Owner

Explore tax relief opportunities by claiming home office expenses. From utility bills to furniture, discover how these claims can financially benefit your business.
Claiming Home Office Expenses as a Business Owner
Here’s what we cover:

In today’s digital world, many business owners manage their ventures from home. This not only offers a comfy work environment but also some financial perks like tax savings.

Let’s explore how you can claim home office expenses and save on taxes.

What Counts as Home Office Costs?

When you work from home, some costs are bound to arise. Luckily, you can claim a part of these costs and lower your tax bill.

Here’s a breakdown:

  • Utility Bills: Claim a portion of your electricity, heating, and internet bills based on how much is used for business.
  • Furniture and Gadgets: Desks, chairs, computers, and printers are some of the items you can claim.
  • Phone Bills: If you use your personal phone for business, a part of the bill can be claimed back​.

Also Read: Rent Tax Credit for Students & Parents in Ireland

Splitting Personal and Business Costs

The key to claiming home office expenses is separating personal costs from business ones.

Here’s a simple approach:

  1. Guesswork: Make a fair guess of how much utility is used for business and claim that part.
  2. Keep Records: Maintain a record of all expenses that have a business use.
  3. Use Online Tools: Use online accounting tools to track and record business-related expenses​.

Claiming Phone and Internet Expenses

Your personal phone and home internet, when used for business, can save you money on taxes.

Here’s how:

  • Estimate Usage: Figure out the time spent using your phone and internet for business and claim a portion of the bills.
  • Buying a Business Phone: If you buy a phone with an unlimited plan for business, you could claim the entire cost​.

Can Furniture Save You Money?

Buying furniture for your home office is a business expense. But buying a lavish sofa bed might not qualify as it’s more likely to be used for lounging than working​.

Rent or Mortgage: Can They Be Claimed?

Claiming rent or mortgage costs is tricky and not usually advised due to tax complications. But, if you needed a bigger home for a home office, the extra rent could be claimed. For instance, moving from a 2-bedroom to a 3-bedroom home to create an office space could justify the extra rent as a business expense​.

A Shoutout to Irish Business Leaders

In Ireland, employers can pay directors or employees up to €3.20 per day to cover extra costs of working from home, known as e-Working Allowance​.

Wrapping Up

Claiming home office expenses can get complex, so it’s wise to talk to a tax expert. Remember, saving on taxes means more money for your business. So, explore these tax relief opportunities and give your business a financial boost.

Also Read: 8 Best Small Business Accounting Software Ireland 2023

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