The self-employed, for example, partners in partnerships or sole traders of unincorporated businesses, can make claims for costs that they incur, which can reduce their taxable profits. In some respects, it is easier to make a claim if you are self-employed, as to claim an expense you only need to demonstrate that the expenses are wholly and exclusively incurred for your business, as opposed to an employee that has to satisfy the wholly, exclusively and necessarily criteria for an expense.
Therefore, any running costs in relation to providing IT support, such as mobile phone, home phone, broadband, can be claimed, albeit for a self-employed individual it must be restricted for any private use. Any equipment that you buy for your home office is also an allowable deduction through a claim for capital allowances, but again, a private use restriction is required if the office is used for other activities.
In respect of the general running costs of a household, this is often referred to as a claim for ‘use of home as office’. HMRC has a flat rate scheme that you can claim based upon the number of hours you work in a month. These are as follows:
Reviewing your arrangements – consistency is key