| A home office deduction is well worth considering if | | | | that was exclusively used for your business. As a |
| you work, or run your business, from home. Depending | | | | rough guide, to figure out the amount of electricity that |
| on your local tax law, you could be eligible for some | | | | is used by your business, simply divide the cost of the |
| tax relief. | | | | entire bill, by the number of rooms in your home. |
| What this means is that if you able to qualify for this | | | | Another method of calculation is to measure the |
| tax relief, you can reduce your tax bill accordingly and | | | | square footage of your home and office and deduct |
| retain more of your business profits. Naturally, the | | | | the office size from the main house, in order to gauge |
| Inland Revenue is very careful to outline who does and | | | | correct percentage rates of payment. |
| doesn't qualify for a home business deduction. You | | | | It's possible that you could even be able to claim back |
| must check carefully to ensure that you are genuinely | | | | some of your mortgage payments. A prudent step |
| eligible. | | | | would be to obtain the services of an account who |
| IMPORTANT: The information in this article applies | | | | can advise you how to work out the appropriate |
| generally, but the rules in each country may vary. Be | | | | amounts. |
| sure to check the website of your local tax office for | | | | Additionally, business expenses can include repairs, |
| more information | | | | maintenance and water bills. File and archive all of your |
| The business expenses that you claim for should be | | | | bills so that, when it's time to calculate your tax relief, |
| carefully reviewed and calculated so that the Inland | | | | you can figure out the appropriate amount. Some |
| Revenue perceives them as normal and not outside | | | | expenses are not eligible, so be sure to take note of |
| the realm of reason. Claiming too much in this area | | | | what you can and cannot claim back. |
| could result in a visit from the tax man and probably a | | | | A home office deduction could make the difference |
| time-consuming audit. | | | | between your business going under, or surviving for |
| To be eligible for a home office deduction you must | | | | another year. Legitimate home businesses should |
| have a designated room or area in your home that is | | | | seriously consider claiming back on their expenses. |
| used specifically for your business, on a regular basis. | | | | Whether you are a home business owner working as |
| Your main business dealings should be done in that | | | | a self-employed individual, or simply working for an |
| room or area including client meetings and | | | | employer out of a home office, you should take the |
| administration. | | | | time to find out if you are eligible for tax relief or other |
| At the end of every month you will be able to claim | | | | benefits. |
| money back from the Inland Revenue on electricity | | | | |