If you use an area of your home for your business, such as your home office, garage or a workshop, you can claim a portion of the household expenses and reduce your tax bill.
With Solo claiming home office expenses is simple. All you need to do to get setup is enter what percentage of your home is used for business and Solo will do all the math so you’re always claiming the correct amount.
Here’s some info to help you determine what percentage you can claim.
What percentage can you claim?
If your home is 100 square metres and your working space is 10 square metres — 10% of the total area — you can claim 10% of expenses.
If you aren’t using a separate area of your home for business, you’ll need to take into account how much time you spend on your business and the area used. Eg if 10% of your home is used for business, but half of the time you use that area for personal use than you can claim 5%.
Which expenses can you claim?
Below are the common household expenses that you can claim:
- Internet & Phone
- Water Utility
- Home Insurance
- Mortgage Interest – Mortgage interest only, and not the principal portion of your repayments.
- Repairs & Maintenance
Simply select the appropriate category and Solo will work out the deduction amount, as well as the GST amount if you’re GST registered. Solo also provides hints on which expenses you can claim and even suggests claimable expenses directly from your transactions.