Deductions for a sole trader or partnership home-based business. You may be able to claim a deduction for the occupancy and running expenses for the area of your home that is used for business purposes: Occupancy expenses.
Does a sole trader have a registered address?
The sole trader As a sole trader, you will be required to provide your home and business address to HMRC when you register for self-assessment. But if you work from home, then the two addresses will be the same. Sometimes sole traders prefer to use a third party professional address for their business.
Can You claim home office expenses as a sole trader?
If you’re self-employed, you can claim for a wide range of expenses against your tax bill, although you have to be careful to only apportion costs which have been genuinely incurred in the running of your business.
Where to work when working as a sole trader?
But on a fine day you might want to take your work out into the garden and tap away on your laptop in the sun (just watch out for low-flying pigeons). A home-based accountant might work in a study but meet and greet clients in their living-room. It depends on you, your home and your business!
Can a sole trader claim on a floor area basis?
You can only claim on floor area basis if you have an area of your home set aside exclusively for business. For example, if the floor area of your home office is 10% of the total area of your home, you can claim 10% of your running expenses.
How are tax benefits worked out for sole traders?
The good news is that HMRC accept that every sole trader who works at home some or all of the time, will have a different set-up. So, when you work at home, you’re allowed to take a proportion of all your home running costs and put those into your expenses, so that they reduce your profit and you pay less tax. How is the proportion worked out?
