Often our clients find themselves doing a small amount of administration from home – not really substantive duties – just a bit of paperwork in the evenings, and checking emails.
With the world turning digital the tax office recognises that you can in fact do some effective work from home, and there is a small but useful tax-free claim you can utilise.
The HMRC will allow you to claim £3 per week (or £39 a quarter, or £156 per year) with no receipts needed. It doesn’t sound like much, but for the sake of putting four quarterly entries into your ‘my expenses’ page, you will save yourself £33 in company tax. And if you are a higher rate tax payer, you will also reduce your personal tax liability by £39. All for less than five minutes work in updating your expenses within your No Worries online account.
What we suggest you do is claim this expense every quarter (£39) and call it “Homeworking £3 per week allowance” within your expenses page. Easy.