HOME OFFICE EXPENSES

NB For all expense claims, it is crucial that accurate and detailed records are kept, including all relevant invoices, receipts and statements.

 

HOME OFFICE SALARY EARNERS

A) Salaried employees working at least 50% from home

The number of employees required to work from home has dramatically increased due to the pandemic. If you were required or elected to work from home, you might be able to claim home office expenses on your tax return, but there are certain requirements:

  1. You must have spent at least 50% of your work time working from home (for the tax year)
  2. You need a designated space as your office at home. This space must not be used for any other purposes, e.g. entertainment, dining or sleeping and must contain the tools of your trade (e.g. desk and computer).
  3.  You need permission (a letter or alternately a note in your contract) from your employer to work from home.

To claim home office expenses, the expenses incurred is apportioned according to the space of the home office compared to the surface area of the house (e.g. a 10m2 office in a 100m2 house allows for 10% of the home expenses to be claimed as home office expenses). WE WILL NEED FLOOR PLANS TO PROVE THIS.

Typical home office expenses that can be claimed include:

  1. Rental expenses if the tax payer is renting the property or bond interest if the property is owned and still bonded.
  2. Levies, electricity, rates and taxes.
  3. Maintenance expenses including garden services.
  4. Telephone and internet expenses.
  5. Cleaning expenses.
  6. Security expenses.
  7. Stationery.
  8. Wear and tear on assets/home office equipment.
  9. Office equipment.
  10. Security expenses.

Expenses that cannot be claimed:

  1. Travel, unless you receive a travel allowance, in which case you will claim for this separately (see the travel allowance page).
  2. Any upgrades to the premises.

 

HOME OFFICE COMMISION EARNERS

B) Commission earners, earning at least 50% of gross remuneration in commission income
  1. Travel

(requires a comprehensive travel logbook for business travel portion, car purchase agreement, as well as receipts, invoices and statements for expenses)

      1. wear and tear on your car.
      2. interest and finance fees if car is financed.
      3. maintenance costs.
      4. fuel and oil costs.
      5. car license fees.
      6. insurance costs.
      7. toll fees.
  1. Home office expenses
  • Requirements:
    • You must have spent at least 50% of your work time working from home (for the tax year)
    • You need a designated space as your office at home. This space must not be used for any other purposes, e.g. entertainment, dining or sleeping and must contain the tools of your trade (e.g. desk and computer).
    • Expenses are apportioned according to the office space relative to the floor area of the house. WE WILL NEED FLOOR PLANS TO PROVE THIS.
      1. Rental expenses if the tax payer is renting the property or bond interest if the property is owned and still bonded.
      2. Levies, electricity, rates and taxes.
      3. Maintenance expenses including garden services.
      4. Telephone and internet expenses (see cellphone expenses below).
      5. Cleaning expenses.
      6. Security expenses.
      7. Stationery.
      8. Wear and tear on assets/home office equipment in excess of R7,500.
      9. Office equipment.
      10. Security expenses

3. Entertainment expenses

This applies specifically to sales and marketing related entertainment of clients. detailed records are required and all expenses need to be verified by receipts and invoices.

4. Cellphone

Cellphone expenses are apportioned according to the percentage business use, rather than according to the floor area of the study.