Have You Ever Considered The Tax Benefits Of Working From Home?

Ever considered the tax benefits of working from home? If not, you really should…. you may be very pleasantly surprised.
I must point out at this juncture that I’m NOT an accountant, and what applies here in Ireland may be totally different in your particular tax jurisdiction- consider that last sentence a “disclaimer”….
If, like me, you have no objection to paying taxes which are necessary for the provision of services that benefit everyone in your country but wholeheartedly object to paying vast amounts of tax for a Government to squander or to bailout banks, wealthy property developers etc -and I’m sure this strikes a particular chord with any Irish citizens reading this- then you will be delighted to know that there are, indeed, major tax benefits attached to working from home.

So, what are these work from home tax benefits?

Depending on how you set-up your home-based business, the tax benefits you will gain will differ. My advice to you would be to find a reputable accountant and seek their advice before doing anything else. Best way to find a reputable accountant? Personal recommendation from a business person in your locale rather than just consulting your telephone directory.

Here, in Ireland, most people just starting up a home-based business, will trade as a “sole trader” then, as the money starts to roll-in, they may choose to form a Limited Company. There are advantages and disadvantages to both statuses from a tax perspective, depending on your personal situation and I won’t go into them in too much detail here. Again, seek a consultation from an accountant as to which status will give you the most tax benefits.

“If I’m working from home, are there any tax benefits to being VAT-registered as a sole trader?”

In Ireland, and I suspect the same applies in the UK, YES there are huge benefits to being registered for VAT since you can reclaim ALL the VAT back on goods and services you buy which are used in the running of your home business. I’m sure you’ve bought products from ClickBank and other affiliate marketplaces – for some you are charged VAT/Sales Tax and this is all refundable at the end of every VAT period if you are a VAT- registered trader.

There are other tax benefits of working from home – since your home office is, in fact, a workplace, you can offset a percentage of your utility bills against the profits of your home-based business i.e electricity, heating, telephone etc.

If you have a car, and you use it for travelling to Networking meetings etc, then a percentage of the running costs of your car can also be claimed as valid business expenses and can also be used to reduce the tax liability on your profits.

Travel to and from and attendance at Seminars/Conferences in the course of your home business are also tax deductible.

You may think that just working on your laptop from your dining room table holds no tax benefits to you but you may be wrong! Go speak to an accountant and find out just how many tax benefits there are to working from home.

Let’s face it, we are all being asked to pay so much in the way of tax these days, in one form or another, so why not check out how you can legally avail of any tax benefits you may be entitled to by working from home? Better the money in your own pocket than in that of Revenue

So, if you’re considering working from home, and setting-up a home-based online business, when considering the advantages of such a venture – and, believe me, there are MANY- work the hours you want, work whilst you travel etc etc- why not also consider the tax benefits of working from home? You could be very pleasantly surprised

If you want to get started fast – and Earn as you Learn – then be sure to check out this program right away: Maverick Money Makers
*As a duly authorized commissioned affiliate I fully endorse this product.