Claiming directors’ Working from Home Allowance has become even simpler…
Directors’ Working from Home Allowance
Working from home brings many benefits with it but can also become very costly very quickly. With business phone calls, lighting, heating, etc, the expenses can mount up without you even noticing.
As a director working from home, you might already know that you can offset these costs by reclaiming them through your Working from Home Allowance.
However, you might not know that a recent change in Working from Home Allowance means that you could be able to claim more back than ever before.
The fastest and simplest route to reclaiming your working from home expenses is by using the flat rate.
In the past, the flat rate sat at £4 per week for homeworking.
But now you can reclaim an extra £2 per week, taking the claimable amount up to £6 per week.
This might seem like a small change, but it adds up over time. For example, where you may have reclaimed £16 for a month of homeworking before, you could now reclaim £24 for a similar month of homeworking now. Which equates to £288 annually.
Remember that you can also reclaim your expenses by calculating them manually.
Before this change, the difference between the flat rate and a manually calculated rate was stark with the latter providing much better value in most cases.
Now, the difference is much less, and many directors may find themselves tempted by the simpler option.
Is there Still a Reason to Calculate Manually?
If you don’t have an accountant, you may now be better off claiming the flat rate rather than calculating it manually.
This is because the administrative burden on keeping records and doing the calculation takes time away from doing business. When you factor this in, you might be better off simply claiming the flat rate to reduce the workload.
The ease of using the new flat rate, combined with the payment increase, makes claiming your Directors’ Working from Home Allowance more appealing than it has ever been.
However, for the best results with the highest yield and lowest administrative strain on yourself, accountants still provide the most valuable services.
If you’re interested in making the most out of working from home as a director, call us today at 01772 788200 to find out how we can help you keep on top of your finances.
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