Home Office Expenses That You Can Claim

Home Office Expenses that you can claim

 

Fit out cost

If you are building a home office exclusively for the purposes of your business, there may be some allowances you can claim once you can show it’s wholly and exclusively for your business

 

You can claim 12.5% allowance each year on the below items up to a maximum of 8 years

 

1. Office furniture
2. Computer Equipment
3. Mobile office- Separate building, (log cabin)
4. Mobile Heating fans
5. Maintenance and Painting

 

Where it is part of your home the following cannot be claimed

1. Roof
2. Groundworks
3. Fixed lighting
4. Windows
5. Renovations
6. Fixed flooring, e.g wooden floors

 

Operating Costs

Once you are up and running in the home office you may be able to claim the following running costs:

1. Telephone
2. Broadband
3. Light & Heat (Apportionment)
4. Upkeep of office
5. Software costs
6. E-worker allowance of €3.20 per day
7. Insurance costs

You also may claim full tax relief on the above when you can show they are wholly and exclusively required for your business. Where the full amount is not claimable (like Light and Heat) then you must come up with an apportionment.

 

Rent

1. If you own your home and your company is paying you rent, then the rent is taxable in your hands and you must declare to Revenue, there is no tax advantage to this

 

2. If you are renting the property and you wish to claim a portion of your rent, we advise that your apportionment is accurate to the amount of work that you are carrying out at home,

 

 

Rates & Planning

If the office building is used solely for business, then technically you may need planning for change of use and therefore have to pay rates. If the office is of mixed use, you will not need planning.

Ultimately this will be up to the Valuation office to decide, so therefore if building or buying a mobile office we suggest you take legal advice.

 

Capital Gains tax

Where an employee uses part of their home for work purposes, the CGT exemption for Principle Private Residence will not be affected.

 

If you have any questions on claiming for your home office don't hesitate to get in touch:

Email info@kalcacounting.ie or call the Kalc Accounting team on 01 8084191