You have two choices, you can choose to claim simplified expenses for the self-employed or you can work out your actual costs by calculating the proportion of personal and business use for your home, eg how much of your utility bills are for business. The Gov.uk has a simplified expenses checker to help you decide which method is best for you.
You can decide to calculate a reasonable proportion of appropriate costs, 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.
Use the proportion to work out a percentage of your:
- Council tax
- Home insurance, unless your business is covered by a separate policy
- Mortgage interest (not repayments of the capital, you can’t claim any of that)
- Rent, if you rent your home from a landlord
- General household repairs and maintenance, for example repairs to the roof (but you can’t claim for redecoration to a room that has no business use)
My reasonable apportionment recommendation would be take the amount of rooms in your home, then divide your monthly costs by the number of rooms that you use. (for example all costs come to £1000, I have 5 liveable rooms(excluding bathrooms)) Then how much of that time in that room is for business use? So we have £200 a month for this room but the business use of that room is 50%. So my monthly allowable claim is £100 per month.
Hope this helps. Any questions let me know.