In this post-pandemic era, our working habits have drastically changed from our pre-2020 habits. The trend of working from home is growing in the UK as more people are looking for flexible ways to work and companies already have systems that allow this flexibility as a leftover from the pandemic.
This shift in the traditional workplace can offer great benefits, but it’s essential to consider the financial implications of this lifestyle. The team at GW and Co Accountants have put together a list of things to consider when working from home in the UK:
- Tax Implications
Working from home can have a significant impact on your tax situation. The UK tax system is complicated, and it’s essential to understand how working from home may affect your income tax and National Insurance contributions. If you’re self-employed, you may be eligible for tax deductions for certain expenses related to working from home.
2. Business Insurance
If you’re running a business from home, it’s important to make sure you have the right business insurance in place. This will cover you in the event of any legal disputes or other issues related to your business.Home
3. Office Costs
Working from home is convenient, but it can also come with additional costs. You may need to invest in a laptop, computer, and other equipment to set up a comfortable and productive home office. Some of these costs can be claimed back from your company.
4. Working from Home Tax Relief
The UK government offers a Working from Home Allowance to help cover the costs associated with working from home. This allowance is available to certain employees and can be used to cover a variety of expenses, such as heating, lighting, and broadband.
5. Working from Home Expenses
Even if you’re not eligible for the Working from Home Allowance, you may still be able to claim certain expenses incurred while working from home. This includes things like stationery, business phone calls, or printer ink.
Working from home can be a great way to balance work and life, but it’s important to understand the financial implications. If you are unsure, GW & Co accountants are here to help. We can look at your situation and advise of any steps that need taking. Moreover, we can ensure you are on track with your taxes and contributions so that you do not come across any common pitfalls.
If you would like professional guidance and advice on your flexible working situation, please do not hesitate to contact our team here at GW & Co Accountants.
