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Work from home deduction in QuickBooks Self-Employed

by Intuit4 Updated 2 years ago

If you perform your self-employment work from your home, you may be able to claim a deduction. QuickBooks Self-Employed uses the simplified expense method to calculate a deduction for you.

What is the simplified expense method?

The simplified expense method uses a flat rate based on the hours you work from home each month. With this method, you don't have to calculate the business-to-personal proportion of home expenses (like heating, Council Tax, mortgage interest, and more).

You can use the flat rate deduction if you work for 25 hours or more a month from your home.

How to claim

If you want to claim for 'work from home' under the simplified expenses method, select Settings ⚙️ and choose Tax Profile.

On this page, you can record the number of hours you work from home on the Business use of home office box. If you enter 25 or more, we automatically know the amount you can claim and record that amount in your tax report.

If you want to claim the actual costs and not use the simplified method, then leave the Business use of home office box blank and keep categorising your bank transactions.

The flat rate does not include telephone or Internet expenses. Use actual costs for these expenses to calculate the business proportion of the deduction.

Consult your accountant or advisor if you have questions. Check the HMRC website for the current flat rate deduction amounts and examples.

QuickBooks Self-Employed

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