Tax season: What home office expenses can be claimed?
Thinking of adding a deduction in your personal tax return for home office expenses? You may be surprised by what the South African Revenue Service (SARS) does and does not allow.
The place and way we work have seen radical changes in the last few years, with many of us now working permanently from home or splitting our time between home and office. What’s more, there are additional tax breaks that you can access if you now work mainly from home.
If you want to know if you qualify, read Tax season: Does your home office qualify?
Qualifying expenses
SARS allows qualifying taxpayers to claim a number of working from home expenses if you have the documentation to back up your deductions.
Apportioned expenses: These expenses cannot be claimed in full but must be calculated in terms of the size of the home office, relative to the property.
- Rent
- Interest accrued on bond (this will fall away in the 2023 tax season)
- Cost of repairs that impacted the home office
- Premise expenses such as electricity, rates and taxes and cleaning costs
Home office expenses: These are expenses directly related to your home office and can be claimed in full.
- Office equipment, Wi-Fi equipment, furniture and fittings (and repairs)
- General wear and tear on items used exclusively in the home office
- Phones (only applicable to commission owners)
- Stationery (only applicable to commission owners)
Non-qualifying expenses
SARS also makes note of expenses that are not eligible to be claimed.
- Capital expenses such as home loan repayments
- Capital improvements such as the building of a home office
- Water expenses
- Data costs
- Refreshments and food
- Solar power
To claim these expenses, you will need to keep the relevant documentation – such as proof of purchase, rental agreements and the like – for 5 years so that they can be presented during an audit if required.
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