There are various tax reliefs available when you work from home for your own limited company. The situation is different to that of sole traders, because when your business is a limited company, it has its own legal identity. The costs of running the company from home, such as your broadband and telephone line.
Can limited company pay home office?
The short answer is yes, it can. However, it’s unlikely you will be able to claim tax relief on the office itself as it would be classed as capital expenditure. This doesn’t mean that your limited company can’t pay for it, just that any of the costs listed above will not be tax-deductible.
Can directors claim working from home?
As an employee or a director working from home, you are allowed to reclaim reasonable ‘work from home’ expenses from your company. HMRC allows you to reclaim a flat rate per month, depending on the number of hours a month you would typically work from home.
What home office expenses can I claim as a limited company director?
However, as a limited company director, you can’t claim for any fixed costs – as you would have had to pay for these anyway; such as Council Tax, Rent and Mortgage Interest. You can only claim for the cost of broadband and telephone bills if the contracts are your company’s name.
What expenses can I claim for a home office?
The working from home expenses which you can claim for are as follows:
- Mortgage.
- Rent.
- Council tax.
- Light and heat.
- Telephone and broadband.
- Property repairs.
- Water.
- Your vehicle (including insurance, repairs, breakdown cover and fuel)
How much can I claim for home office Limited?
HMRC flat rate for limited companies You do not need receipts to prove your expenses and you can claim £4 per week, which is an allowance of £208 for the year. This can be included as an allowable expense alongside anything else you are claiming.
