Some small businesses are run from the business owner’s home.
A frequently asked question for those in this situation, is what costs can I claim against my business for operating out of my home? HMRC allows a flat rate of £4 per week which can be claimed back from the company, without any need for keeping receipts or bills. However, this amount doesn’t always cover the full cost of working out of your home.
Instead of the flat rate of £4 per week, business owners can claim back an element of the running costs of home space, based on the proportion of the property used for the business and the proportion of time that space is used for their business.
A rental agreement should be put in place between the director and the company. An example rental agreement is attached.
Use of home licence agreement template
For more information and advice on claiming costs of working from home against your business, please get in touch.
