By Lyndsey Hall
Some of us have to work at home; others see the idea as the perfect solution to a noisy office, endless interruptions, or a long and expensive commute. But if you are seriously thinking of leaving the office on a permanent basis, there are a number of questions you must first consider.
What you can claim: self employed
If you are a self-employed person, you can claim costs in your accounts that are incurred wholly and exclusively for the purpose of your business.
Having somewhere to do your business paperwork is essential. If you don’t maintain a separate office, you can claim a reasonable proportion of those household running costs that represent the space and time in which your office operation occupies your home. This includes a proportion of your rent, council tax and water rates.
What you can claim: employee
If you are an employee, you may be able to claim some of the additional variable expenses incurred by working at home. These costs amount to the increased energy needed to heat and light your property for longer, and the extra water used if that is metered.
You can also claim the cost of business-related telephone calls, but not a proportion of telephone line rental, or part of your mortgage or insurance costs. These amounts are considered to be fixed whether or not you work from home, so you can’t reclaim any part.
Reclaiming the costs of working from home
If you have agreed with your employer that you will work at home for all or part of your working time, your employer can reimburse you for the extra energy used during that time. Your employer can reimburse you the sum of £6 (£26 per month) for each week you work from home tax and NIC free.
If you want to claim more than £6 per week (£26 a month), excluding telephone calls, you must be able to demonstrate that your energy bills have increased by more than this amount.
How will remote working impact on productivity?
The relaxed and comfortable atmosphere generated by your home environment may sound good for morale but it is also a key reason for you to question your motives. Make sure you’re not looking for an easy option, because this is not it. And make sure that your physical absence is not going to leave your business in serious trouble.
Can you maintain the work/life distinction?
Working from home offers flexibility but it also requires true self-discipline and organisation. Making a mental and physical distinction between your home and your working life is essential, both to resist the distractions of the television or garden, and, at the other end of the scale, to prevent work from wholly consuming your life.
Creating a dedicated working area is essential, while separate mobile phones for home and business could help you to maintain the boundary between ‘work’ and ‘home’ time. Switch off your work phone at the end of the day to limit out of hours interruptions.
Do you have the right working environment?
Take the creation of your home office seriously. It should be comfortable, well-lit and properly equipped. Working at the kitchen table or from the sofa, or even from bed, is rarely conducive to an efficient frame of mind.
Bear in mind that you may need to revise your insurance policy to cover business equipment in the home.
Will others support you?
It is one thing to be disciplined yourself – you will also need the support of those around you: beware of constant family interruptions! As a result of the COVID-19 pandemic and lockdown, we’ve all grown used to the blend of work and home life, but as things gradually return to normal we will hopefully regain some separation between the two.
How do you maintain efficiency and keep a balanced blend of work and home life when working remotely? Give us your best tips in the comments or on Linkedin.
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Minimising the impact of a pandemic on your business
Is ‘rest ethic’ the new work ethic?
