![]() ![]() and likewise, from 2023-24 and onwards the total number of actual hours worked from home must be recorded.The record must be of the total number of actual hours worked from home For 2022-23 from 1 March 2023 to 30 June 2023 an estimate of hours cannot be used.For 2022-23 until 28 February 2023 the record must be representative of the total number of hours worked.PCG 2023/1 requires that records of hours spent working from home be kept. On the other hand, a plumber who completes work at home on a regular basis in connection with his business, such as invoicing, has additional expenses, evidence of bills paid and on that basis can claim using the fixed rate method. The claim is to be based on factual circumstances which give rise to ‘additional running expenses’ due to working from home.Įvidence of additional costs must be available.įor example, a taxpayer living rent-free with his parents, and making no contribution to household bills is not incurring additional expenses, and thus not entitled to claim the fixed rate method. Fixed Rate Method Record Keeping 2022-24 onwards Additional Running Expenses Note that Taxation Ruling TR 93/30 “Income tax: deductions for home office expenses” continues to apply and should be considered in conjunction with the new ruling. This does not require a separate home office or dedicated work area set aside in the home. Under the revised fixed rate method from 1 July 2022, depreciation allowance deductions (such as for office furniture and technology) can be claimed in addition to the 67 cents per hour spent working from home. the repairs and maintenance to depreciating assets.electricity or gas for lighting, heating, cooling and electronic items used while working from home.The fixed rate from 1 July 2022 covers the total of ‘additional running expenses’ which includes: Records which establish pattern of work-related usageĭocumentary evidence and estimates where permissableĪctual expenses (with substantiation) or ‘the ‘shortcut’ 80 cents per hour methodĭraft Practical Compliance Guideline PCG 2022/D4 which sets out the basis of a revised fixed rate method to apply from 1 July 2022 has been replaced by Practical Compliance Guideline PCG 2023/1. Record of representative hours up to, thereafter actual hours (PCG 2023/1) ![]() Requirement for dedicated home office space Mobile phone and internet costs as well as computer consumables and stationery ![]() ‘Additional running expenses’: Internet, phone, electricity, gas, stationery, computer consumables, repairs & maintenance of depreciable assetsĮlectricity and gas (for heating, lighting, and cooling), depreciation, and repairs of office furniture Check detailed requirements before making any claim. This is a crude summary, and a guide only. Comparison Of This Year’s And Last Year’s Fixed Rate Claim Methods The main differences are set out in the table below. If you have used the fixed rate method previously, you will need to be aware of the differences. There must be available evidence to show that additional expenses were in fact incurred. Hourly rate method of estimating home office deduction Revised Fixed Rate Method From 1 July 2022įrom 1 July 2022 a new guideline provides for a revised fixed rate method with a deduction rate of 67 cents per hour, which can be used as an estimate of fair and reasonable additional expenses incurred working from home. You can claim separately for depreciation, and it is no longer a requirement to have a home office specifically set aside for work. The hourly fixed rate for 2022-23 is 67 cents per working hour, and this covers internet, phone, electricity, gas, stationery and computer consumables. Claim Methods For 2022-23įor 2022-23 you still have a choice of claiming the actual costs, with records of expenditure being required.Īlternatively the fixed rate method covers most running costs but allows depreciation to be claimed in addition. ![]() This may include a portion of your electricity, gas, internet, telephone expenses and depreciation and repairs of equipment. If your home is not a place of business, but you spend time working from or at home, then your claims are for running expenses. This requires evidence of a more-than-incidental use of an otherwise private area of the house. Tax deductions for Home Office expenses when working from home can be claimed if your home is a place of business, or if it is used for income earning activities. ![]()
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