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  3. I am currently obliged to work from home, what expenses can I claim through my Limited Company?

I am currently obliged to work from home, what expenses can I claim through my Limited Company?

There are a number of expenses which you limited company can reimburse back to you during an arranged home working period.

A home-working arrangement will exist between you and your limited company, the agreement doesn’t need to be in writing but we recommend that you document this period spent working from home. During this time, you must be carrying out your duties of employment.

The below list covers the main expenses which are reimbursable by your limited company during your home working arrangement period:

Employer home-working payments

Your company can agree to make a tax-free flat payment to you of £6 per week where you are working at home, under a home-working arrangement – without having to justify the amount paid.

Employer home-working additional payments

Your company can issue additional payments to you but you must keep supporting evidence to show that the payment is wholly for additional household expenses incurred by you whilst carrying out the duties at home.

Typically, this will include the additional costs such as heating and lighting ( electricity/gas) the work area and, if applicable, the metered cost of increased water use, internet charges or business phone calls.

Mobile phones
Your company can reimburse you for the itemised business calls you incur using your personal mobile phone.
Home phones
Similarly your company can reimburse you for itemised business calls you incur using your personal home phone. If you have a dedicated business line separate to your own personal line then this is claimable in full.
As noted above, the additional household expenses may include your broadband charges in certain circumstances. If you begin to work from home under home-working arrangements and are already paying for a broadband internet connection at home, there is no additional expense to be claimed.

However, if you require this to be installed, then this is an additional cost of working from home and therefore can be claimed. In this case, it must be principally for business use with insignificant private use.

Office stationery

Your company can reimburse you for the cost of purchasing stamps, stationery and items of equipment for you to use in the performance of your duties of employment whilst working from home. 

Office equipment

If additional equipment is required during your home working period, (laptop /monitors), we advise that this is paid directly by you company and delivered to your home address. The equipment should be principally for business use with insignificant personal use.

Updated on 7th April 2020

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