As working from home is the new normal for many South Africans, an individual who earns remuneration from an employer can only claim home office expenses if:
- Their home office is equipped for and regularly and exclusively used by the individual to work for the employer for which they earn remuneration.
- At least 50% of their remuneration is variable (such as commission or bonusses) and at least 50% of working hours are spent away from the employer’s office. If the individual has less than 50% of remuneration as variable payments, they can still claim home office expenses if they spend more than 50% of working hours working from home.
With the instability of lockdown, it has been demonstrated that various working arrangements can work successfully.
This means that salaried employees could spend more than 50% of their working hours in the 2021 year of assessment (12 months ending February 2021) working in their home office.
If you as employee want to claim home office expenses in your ITR12tax return for 2021 year of assessment, you should retain all invoices and statements of these expenses and a spreadsheet of the number of days worked at home for the tax year.
The following information/proof should be retained to have sufficient proof of expenses:
- Letter/communication from employer to work from home
- Repairs to home office
- Calculation of Square meter of home office area relative to the total residence
- Rates & Taxes
The ratio of the office will be applied on the above expenses.
Other expenses that is deductible
- Internet connectivity
- Cell Phone
With so many adjustments during this time, this will be a benefit for many that had to adapt during this time.
Contact us if you have any questions