Can I claim?
In some cases it is possible to claim tax relief on your water rates but the extent of relief available depends on personal circumstances.
By renting an office space exclusively for business use you are entitled to claim the total rent and utilities expenditure.
Many self-employed individuals use their home address for business purposes which means the business portion of their household expenditure can be used to set off against their tax liability.
- Self-Employed Expenses + Office Space and Utilities: Water Rates
- Self-Employed Expenses + Use of Home as Office: Water Rates
No private use can be claimed so it is pivotal to separate the business percentage of the total expense. One way to do this is to calculate the amount of time which is spent on business; this could include invoicing, marketing or telephone calls. This type of calculation can be complex and difficult to work out, especially if the amount of time you spend at home working varies. For instance:
Another possibility is to apply an all-around-expenses a flat rate already agreed by HMRC for small businesses of £4 per week.
Opting for flat-rates on SimpleTax
- Self-Employed Expenses – “Use of Home as Office” – Use of Home as Office Allowance
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