Home workers encouraged to claim tax relief

Date: 28th October 2008

Home-based business start-ups have been encouraged to claim expenses for those employees working from home.

The advice has come from the Association of Chartered Certified Accountants (ACCA), which has directed managers and employees to the HM Revenue and Customs (HMRC) website for more information on taxation relief.

Usually, the relief includes expenses such as the extra cost of gas and electricity, business phone calls and the use of a powered vehicle.

Chas Roy-Chowdhury, head of taxation at the ACCA, said: "It is important to claim all tax reliefs if you are running a business from your home, or if you are working as an employee at home; however small the relief payments may be, it is still important to claim them."

Expenses that are exempt from the taxation relief include mortgage payments and internet and phones bills for personal usage.

Business start-ups only have until this Friday (October 31st) to submit a self-assessment tax return with HMRC, or alternatively, until January 31st if filing online.