The UK has seen a significant increase in energy costs with most households on variable tariffs, and some households penalised for their energy provider going bust and being switched to one of the bigger companies.\n\n\n\nAs a\nsole trader (but not as an employee) you can use the simplified expenses claim\nin your business, to claim the following amounts as an expense against your\nprofits:\n\n\n\nHours\nof business use per month Flat\nrate per month\n\n\n\n25\nto 50 \u00a310\n\n\n\n51\nto 100 \u00a318\n\n\n\n101 and more \u00a326\n\n\n\nhttps:\/\/www.gov.uk\/simpler-income-tax-simplified-expenses\/working-from-home\n\n\n\nBut these rates are not going to cover the energy bills alone! \n\n\n\nIf the average household has 6 rooms and 1 of these rooms is used as an office, with energy bills predicted to increase to \u00a33,600 this winter that would equate to \u00a33,600 x 1\/6 = \u00a3600 and the maximum simplified amount that could be claimed is 12 x \u00a326 = \u00a3312, so just over half of the actual cost. \n\n\n\nCan I\nclaim more back from my business, is there an alternative method?\n\n\n\nThe\nanswer to this is yes you can.\n\n\n\nBIM47820 - Specific deductions: use of home: specific expenses\n\n\n\nFixed costs\n\n\n\nCouncil\nTax \u2013 Allowable in those instances where other property-based expenses are\ndeductible. See BIM46840\nfor more detailed guidance.\n\n\n\nMortgage\ninterest \u2013 Interest element only, multiplied by business proportion of the premises;\nrepayments of capital strictly not included. If the cash basis is used the\namount allowable may be restricted see BIM70040.\n\n\n\nInsurance\n\u2013 Separate premium 100% allowable or additional business cover proportion of\nexisting household premium.\n\n\n\nRent\n\u2013 Proportion used for business purposes, see BIM38110\n\n\n\nGeneral\nrepairs \u2013 Proportion used for business purposes for general redecoration or\nrepairs to exterior or repairs to roof. However, all repairs such as repainting\nroom used for business, putting in new lighting or replacing a bling is fully\nallowable as wholly and exclusively for the business. See BIM46900\n\n\n\nIf part of the home is set aside solely for trade use for a specific period, then a part of these costs is allowable. It will normally be appropriate to apportion these expenses by area and time.\n\n\n\nRunning costs\n\n\n\nCleaning \u2013 Cost for cleaning that room or apportionment\nof total household cost.\n\n\n\nHeat, light and power \u2013 An apportionment of the\nhousehold rooms used may be appropriate, alternatively with most households\nhaving smart meters it may be easier to monitor these costs during the day if\nworking from home. \n\n\n\nAlso, this may depend on the type of trade for example a\nrecording studio setup in one of the rooms of the house is likely to draw a lot\nmore electricity than one-sixth of the total household heat, light and power\nbills.\n\n\n\nTelephone and Broadband \u2013 If you have a separate\nbusiness line this is fully allowable. If there is no separate business line a\nproportion of the land line can be added to the business calls based on the\nproportion of total incoming and outgoing calls.\n\n\n\nThe broadband costs can be apportioned using same\npercentages as the landline costs.\n\n\n\nWater rates and metered charges \u2013 The costs should be\napportioned for business purposes; this is likely to be extremely low if an clerical\nbusiness and would only include refreshments and washrooms used whilst working for\nthe business. If only writing up books, then none of the charge can be\nincluded.\n\n\n\nHowever, there may be an instance such as a car valeter\nworking from home who fills a tank in his van with cleaning water before going\nto the client\u2019s premises or who cleans cars at their home. In this case it\nwould seem reasonable to calculate the units used by the business and apportion\nthe supply and wastage costs.\n\n\n\nMake sure\nyou have clear and accurate calculations for business usage, and you can claim\nthe actual costs rather than losing out in times of rising overheads!