Calculating ‘use of home’ expenses

If you work from home, then you can claim a portion of your household expenses as business expenses. This includes:

  • Heating
  • Lighting
  • Mortgage interest
  • Rent
  • Insurance
  • Council Tax

There are two ways to calculate the business portion. We call them the ‘apportionment method’ and the ‘lazy method’.

It’s worth doing a quick calculation for both to check which is best, but if you do more than a few hours work per week from home normally the apportionment method will work out most advantageous.

The Apportionment method Firstly, calculate the number of rooms in your home. Don’t include halls, bathrooms or toilets. Next work out the number of rooms you use for business purposes. You will need to calculate the percentage of the time you use these rooms for business use too. Finally calculate the total of your household bills.

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