Household Bookkeeping Template

As a self-employed individual operating in the UK as a sole trader, it's essential to keep accurate records of your expenses to reduce your tax bill. One crucial expense to track is your work-from-home allowance. HMRC may request proof of how you calculated this figure, so it's vital to maintain receipts and records.

To claim your work-from-home allowance, start by identifying the rooms in your house or flat that you use for business purposes. This includes main areas like bedrooms, living rooms, and kitchens but excludes spaces like gardens, hallways, or bathrooms. Next, calculate how many hours a week you spend working in these designated rooms.

For instance, if you work 8 hours a day, 2 days a week in your living room, the total number of hours would be 16. You should also consider the time spent on personal activities in these rooms to get an accurate figure.

Once you have this information, use our Work From Home Tax Relief Calculator to simplify the process and arrive at the final number for your Self Assessment expenses. This calculator takes you through the step-by-step calculation of your WFH allowance, ensuring accuracy and ease.

When using the reasonable method, which is employed by our Work from Home Allowance Calculator, you can claim home expenses such as utility bills, internet costs, and mortgage interest or rent. To calculate your savings, divide your actual costs by the amount you use your home for work.

The simplified method may produce a smaller tax saving compared to the reasonable method, but both approaches are available through our calculator. By using our tool, you can efficiently determine your work-from-home allowance and reduce your tax bill.

Remember to keep a copy of your calculations and results in case HMRC requests them. With our Work From Home Allowance Calculator, you can ensure accuracy and ease when claiming your work-from-home expenses for your Self Assessment tax return.

Household bookkeeping template