This is what you can deduct if you work from home as a self-employed person
Posted: Sun Dec 22, 2024 3:58 am
With the arrival of the Law of Urgent Reforms of Self-Employment , the deductions that self-employed workers who choose their home as the headquarters of their company can apply have been modified. Important issues such as tax deductions on supplies have been clarified. Let's see what those self-employed workers who work from home can deduct .
The truth is that the magic figure of 30% of utility costs for self-employed people working from home was tricky. So much so that the AEAT has had to issue an information note in which it definitively clarifies how certain deductions that will affect the IRPF declaration will be calculated. They will come into force in 2018 , so they australia phone number for whatsapp will be applied in 2019, when next year's income tax return is settled.
Deductions if I work from home: supplies
According to the Tax Agency, the costs of utilities for the home where the self-employed person works and lives will be deductible, including expenses such as water, gas, electricity, telephone and Internet . To do so, the home must have a percentage allocated to the economic activity, something that is declared in form 036 or 037.
In the case of a 100 square metre dwelling, where the self-employed person is going to use a room, his office, for professional activity, say 10 square metres, the percentage allocated to economic activity will be 10%. This is not a trivial matter, as it is essential when it comes to obtaining more or less deduction.
In this example, the percentage of reduction in supplies will be 30% deductible X 10% of the affected housing = 3%, which will be the percentage of deduction that can be applied to expenses. In a real example they would be the following:
Internet and telephone , with an annual cost of 840 euros
Electricity , with an annual cost of 1500 euros
Water , with 360 euros per year
In total, the supply costs of this self-employed person will be 2,700 euros, of which the deduction that will finally be applied will be 81 euros (2,700: 0.03). The truth is that here the key is in the percentage of our home allocated to the professional activity.
If we allocate 40% of our home to professional activity , the percentage to be applied to utilities will be 12% and the final deduction for the example used will rise to 324 euros per year.
This makes sense when considering electricity costs, but not so much when considering Internet or telephone costs, where the self-employed person will spend the same regardless of the percentage of the home allocated to professional activity. Taking into account that a working day is 8 hours, 12 for many self-employed people, it would not be unreasonable to apply 50% of said supply to these concepts, especially considering that it is essential for most of those who work at home.
Other expenses that remain if you work from home
In addition, we must add other expenses that are deductible if you work from home. Of course, you have to distinguish whether the home is owned or not. If the home is rented and as long as the contract is in the name of the self-employed person, the proportional part of the rent, the IBI, the home insurance or the community fee (in case they pay this concept) can be deducted.
If the property is owned, the proportional part of the community fees, the amortization of the property, mortgage interest, home insurance, taxes such as IBI or garbage can be deducted . These issues, which have been in force for several years, have not been touched.
The truth is that the magic figure of 30% of utility costs for self-employed people working from home was tricky. So much so that the AEAT has had to issue an information note in which it definitively clarifies how certain deductions that will affect the IRPF declaration will be calculated. They will come into force in 2018 , so they australia phone number for whatsapp will be applied in 2019, when next year's income tax return is settled.
Deductions if I work from home: supplies
According to the Tax Agency, the costs of utilities for the home where the self-employed person works and lives will be deductible, including expenses such as water, gas, electricity, telephone and Internet . To do so, the home must have a percentage allocated to the economic activity, something that is declared in form 036 or 037.
In the case of a 100 square metre dwelling, where the self-employed person is going to use a room, his office, for professional activity, say 10 square metres, the percentage allocated to economic activity will be 10%. This is not a trivial matter, as it is essential when it comes to obtaining more or less deduction.
In this example, the percentage of reduction in supplies will be 30% deductible X 10% of the affected housing = 3%, which will be the percentage of deduction that can be applied to expenses. In a real example they would be the following:
Internet and telephone , with an annual cost of 840 euros
Electricity , with an annual cost of 1500 euros
Water , with 360 euros per year
In total, the supply costs of this self-employed person will be 2,700 euros, of which the deduction that will finally be applied will be 81 euros (2,700: 0.03). The truth is that here the key is in the percentage of our home allocated to the professional activity.
If we allocate 40% of our home to professional activity , the percentage to be applied to utilities will be 12% and the final deduction for the example used will rise to 324 euros per year.
This makes sense when considering electricity costs, but not so much when considering Internet or telephone costs, where the self-employed person will spend the same regardless of the percentage of the home allocated to professional activity. Taking into account that a working day is 8 hours, 12 for many self-employed people, it would not be unreasonable to apply 50% of said supply to these concepts, especially considering that it is essential for most of those who work at home.
Other expenses that remain if you work from home
In addition, we must add other expenses that are deductible if you work from home. Of course, you have to distinguish whether the home is owned or not. If the home is rented and as long as the contract is in the name of the self-employed person, the proportional part of the rent, the IBI, the home insurance or the community fee (in case they pay this concept) can be deducted.
If the property is owned, the proportional part of the community fees, the amortization of the property, mortgage interest, home insurance, taxes such as IBI or garbage can be deducted . These issues, which have been in force for several years, have not been touched.