Johannesburg – I have a one-bedroom house with an exclusive office area in my bedroom (office table, office desk and shelves) that I use only for work.
Will I still able to apportion and claim home office costs or does the law require a “room”?
This question was recently raised to SARS as it is particularly relevant for many employees working from home during the pandemic.
SARS made it clear that it will be extremely hard to justify that an area, which is not a separate office, has been specifically equipped for the taxpayer’s trade and is exclusively used for this purpose.
It said it may request floor plans and photos, and the onus will be on the taxpayer to prove its exclusive use. You would need to weigh up the potential tax benefit, which would be relatively small given the size of the area, versus the time and administration costs involved with filing disputes at SARS, which may be required in order to justify claiming this expense.
I’m a web developer and I use a separate room (a study) for work. My earnings are a straight salary, can I claim a home office deduction?
Yes, you may claim a deduction for the home office expenses you incurred as long as the study is used for business only, then you can give SARS a letter from your employer stating that they need you to work from home more than 50% of the time.
You would also need to provide a detailed schedule that lists your home office expenses, a calculation of your deduction, as well as all supporting invoices.
My employer reimbursed me for telephone and internet, can I claim these on my tax return?
No, you cannot claim any costs that are reimbursed. You can only claim the business portion of your telephone and internet costs if you are a commission earner and you paid them yourself.
Can I include a portion of my bathroom and kitchen when working out the square meterage of my home office?
No, SARS will not allow this area to be included. Your home office area comprises the square meterage of your office only.
Can I include gardening costs in my total household costs?
No. It would be very difficult to justify to SARS that your garden forms part of your home office.
Can I include tea, coffee and snacks as part of my home office costs?
No, these are all personal costs, which do not form part of the deduction.
If I don’t have proof of purchases for office equipment prior to this tax year, may I claim for wear-and-tear?
No, you do need to submit a purchase invoice or proof of payment to claim wear and tear to prove that you bought the equipment.
– Financial services provider TaxTim
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