Home workers can save on tax
Self employed people who predominantly work from home can save money by offsetting some of their mortgage interest against tax.
There is no change to the law but the Inland Revenue has recently moved to clarify the guidance, following confusion around the issue.
Accountancy company Grant Thornton's senior tax partner Mike Warburton said that mortgages aren't the only area people can save.
"For a long time it has been the case that self-employed people running a business partly from home could set a proportion of their home running costs against income tax," he said.
"This could include not only mortgage interest, but also costs such as heating and lighting for the part of the home where business was conducted."
Those running their business from home can also claim costs for technology such as VoIP and business speed broadband, both of which can be integral to a successful home business.
Getting up to date technology for your business can save money in the long run and the initial costs can also be put down as a business expense, which can reduce income tax.
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