Working from Home Expenses for Independent Contractors

With the majority of our contractor base working in the IT space, many of our clients either work on a hybrid or remote working arrangement. For someone who hasn't got an established office at home or may be changing their working agreement to incorporate time working from home, this may mean incurring costs to organise a good work-from-home environment. As a contractor, the advantage here is that you can claim certain costs as business expenses when setting up your work-from-home space, allowing you to receive up to 52% tax relief on eligible costs. So what can you claim in this scenario? We’ve compiled a list of the top expenses you can claim involving your home workspace to ensure that our clients do save more of your money as a contractor!

Business Equipment

You can claim tax relief on business assets essential for your contract work. This includes items like laptops, mobile phones, tablets, and office supplies (e.g., printers, scanners). Requirement: Ensure all receipts are in the name of your Limited Company or Umbrella Company.

Software

Expenses for necessary software related to your contract work are also eligible for tax relief. Requirement: Similar to business equipment, receipts must be in the name of your Limited Company or Umbrella Company.

Mobile and Internet Bills

You can claim tax relief on the portion of your mobile phone and internet costs used for business purposes. Requirement: The bills must show your name, address, date, and payment information. You also need to confirm that these services are used for business purposes, either fully or partially.

Utility Expenses

When working from home, you can claim tax relief on your utility bills. Remember, claims should only cover the days you worked from home, excluding weekends and public holidays.

There are two options available:

·E-Workers Allowance: You can claim the e-workers allowance of €3.20 per day for each day you work from home.

·Portion of Utility Bills: Alternatively, you can claim 30% of the cost of electricity, and heat, proportionate to the number of days worked from home over the year

Training Courses

If you need to complete an online course for your contract work, you can claim tax relief on the course cost. Requirement: There should be a reference in your contract or supporting documentation to substantiate the need for the training. Note that long-term educational courses like diplomas or degrees that exceed your contract duration are generally not eligible.

Additional Business Expenses

Don’t forget other common business expenses for contractors, such as:

• Pension contributions
• Small Benefit Exemption Scheme
• Postage and stationery required for your home office
• And much more!

We're Here to Help!

At Icon Accounting, we aim to ensure contractors maximise their tax efficiency while remaining compliant. Each contractor is assigned a dedicated personal account manager to provide personalised advice on all things tax and business expense-related.

For more information on claiming expenses or to receive expert advice from our team, feel free to reach out to us. Existing clients looking for more information on expenses can contact us at any time. Our team is here to help!