Home office expenses and deductions

There are certain requirements that must be met in order to claim a deduction for your home office expenses.

1. It must be necessary for you to have such a home office for trade purposes. If you use the room for trade purposes not linked to your current employment(where you get your salary) then you qualify.
But if it is connected to your employment, you will only be allowed the deduction if you earn additional income such as commission or other variable payments that are based on your work performance. The additional income must be more than 50% of your total income, and most of your duties must be performed in such a room.

2. The room must be equipped for your trade and be used on a regular basis. SARS could inquire how often and how many hours per month the room is used.

3. The room must be used only for trade purposes. You cannot place a computer in the corner of your TV room and claim it's a home office.
You can claim a portion of the following expenses: Interest paid on your bond, electricity, rates and taxes, insurance, salary of your domestic worker and maintenance and repairs.

Example:
The deduction allow is calculated as follows. Total square metres of your home office(15), divided by the total square metres of your house(150) multiplied by the above actual expenses(50 000).
(15/150) x 50 000 = 5 000

You can claim R 5 000 as a home office expense.