Working from home for own company - allowable expenses

HeinekenTick

Registered User
Messages
15
Hello,
I set up a limited company a couple of years ago to carry on a business. I am the only employee and I work from home for most of the time (in a designated work space which is separate from rest of the abode). Home is rented.

For company accounts and for tax purposes, I include 25% of rent, 20% of electricity and 20% of broadband as company business expenses on the basis that they are a fair representation of expenses that are incurred for company business purposes.

Is there anything here that I am doing incorrectly or that tax authorities would have an obvious issue with? The reason I ask is because a friend of mine queried in particular the inclusion of any rent as business.

I checked the revenue.ie website and didn't find anything that would indicate that what I have done would be problematic.

Thanks.
 
It's impossible to say anything definitive without full knowledge of the context. I would question whether such claims are worth the bother given the generally minor amounts involved and a personal preference not to have Revenue snooping through personal household expenses in an effort to justify expense claims.
 
I'd have a lot of issues here. Really, one workspace consumes 20% of the electricity ? Your landlord/county council would be interested in a commercial activity in a residence. And 25% rent? Really?
 
When Revenue wont issue a % guideline what are self employed people who work from home supposed to do ??
 
Don't forget the e-workers allowance also. I think it is around €3 a day but this can add up and is of course tax free
 
Back
Top