How To Calculate Limited Company Work From Home Expenses

A question we are asked all the time at iHubbub' home business network is "how do I calculate my work from home expenses."

If you're the director of a limited company and run your business from home, HMRC allows you to claim tax relief for some of your home expenses. See how to calculate Sole Trader home working expenses.

As long as you use a 'reasonable' method to calculate the amount.how to calculate limited company home working expenses

Below, FreeAgent's Chief Accountant, Emily, outlines the method she uses to calculate business use of home expenses.

Using different steps such as:
Step 1: Count up all the rooms in your home
Step 2: Identify the rooms that you work in, and for how long
Step 3: For each bill, evenly divide the cost by the number of rooms
Step 4: Apply the percentage of work use to the relevant room costs
Step 5: Enter the total business usage amount into your accounts

Go through Emily's steps below, neatly guided by her cool infographic to find out how you can calculate your working from home expenses.

View the full image at FreeAgent