Home office expenses and what I can claim?
For the purpose of this article, it only relates to permanently employed salary staff, who works from home for certain amount / or all hours.
Sole Proprietors have different conditions that applies to them, that we are not discussing here.
SARS is very clear how to calculate the allowable expenses.
The Employee would claim the home office expense deduction under the “Local Business, Trade and Professional Income” section of the ITR12 form.
Thus it is very important to keep all supporting documents, for upload on eFiling with submission of your ITR12 form.
What are the requirements to deduct home office expenditure?
Most importantly, the Employer must allow the Employee to work from home.
Secondly, the employee must spend more than half of their total working hours from their home office.
Thirdly, the Employee must have a dedicated area in the home, that is exclusively used as their home office.
Lastly, the dedicated home office must be equipped with the necessary tools to assist the Employee to work from the home office.
How must my salary be structured for home office expenses?
- If you earn more than 50% of total remuneration in commission, you can claim pro-rated expenses relating to your house.
You can also claim commission-related business expenses.
- If you earn less than 50% of total remuneration in commission, you can claim pro-rated expenses relating to your house only.
How to calculate the pro-rated home size?
In this case you calculate the total m² of the house. Then you calculate the m² of the home office, and convert this to a percentage.
With this in mind, you will use this percentage on the allowable expenses you want to claim.
What expenses can be deducted?
-
Expenses relating to your house
- rent
- interest on mortgage bond
- repairs to premises
- rates & taxes
- cleaning
- wear and tear
- any other expenses relating to your house
-
Commission-related business expenses
- telephone
- stationery
- repairs to printer