Our 5 Top Tips on Working From Home

On Monday, 23 March 2020 Boris Johnson instructed people to work from home wherever possible as a result of the coronavirus (COVID-19) outbreak. Let’s take a look at our five top financial and non-financial tips on working from home.

1. FOLLOW THE THREE GOLDEN RULES

The best way to start your day is to be showered, dressed and breakfasted before powering up your PC.  Make sure your working environment allows you to work effectively. According to Robert Bridger, president of the Chartered Institute of Ergonomics and Human Factors there are three golden rules to consider when working from home:

(1)    Your eyes should be about the same level with the top of the computer screen.
(2)    Your feet should be flat on the floor or on a footrest.
(3)    Your keyboard and mouse should be at elbow height and close to your hands to prevent over-stretching.

By making positive initiations you’ll start the day with the right frame of mind and be far more productive.

2. KNOW WHAT YOU CAN CLAIM FINANCIALLY

Depending on whether you are employed or self-employed this will determine what you can claim for and how you claim.  If your employment status is ‘employed’ and your employer has allowed you to work from home or a COVID-19 enforced absence you may be entitled to a tax-free home allowance and tax relief for expenses in relation to your employment.

(1)    Tax free home-allowance – This is £4 per week up to 5 April 2020 (£6 from 6 April 2020 thereafter)  to cover the cost of gas and electricity bills.  For example, if you are working from home for the next 12 weeks you could be entitled to claim a tax-free allowance in the sum of £72.

(2)    Employment expenses – You are able to claim tax relief for allowable expenses which have been incurred ‘wholly, exclusively and necessarily’ for
the performance of your duties.  Allowable expenses include professional fees or subscriptions, business mileage, or direct expenses associated with working from home.  If you are not registered for Self-Assessment and your allowable expenses do not exceed £2,500 tax relief is available by submitting a Form P87. 

Therefore, as a basic rate tax payer if your expenses are £1,000 you could be entitled to tax relief in the sum of £200.  HMRC will either send you a cheque if the claim relates to the previous tax year or make an adjustment to your tax code if the claim relates to the current tax year. If you are registered for Self-Assessment, tax relief is available by submitting a Tax Return.  Please note tax relief is not due if your employer has reimbursed you for any expenses.

If you are ‘self-employed’ tax relief for expenses is slightly more generous. In order for tax relief expenses must be ‘wholly and exclusively’ incurred for the purposes of your trade.  Expenses may include electricity, mortgage interest, and council tax and you can choose your claim to be based on either actual costs or the simplified method.  If you work from home more than 25 hours per month you can use the simplified basis.  The simplified basis is based on £10 per month for 25 to 50 hours, £18 per month for 51 to 100 hours, and £26 per month for over 100 hours per month.  The actual costs calculation uses your fixed and variable household costs by counting up all the rooms in your home, identifying the rooms and space that you work in and for how long, then for each room divide the cost by the space used, followed by applying the percentage of work use (e ie hours spent) to the relevant room costs.

3. CREATE BOUNDARIES

Make sure your daily working routine has a start and finish time, as well as have a designated place to work. Create boundaries and ensure your family know when you’re working and when you’re not so you can focus at the right times. It’s so easy to work longer hours than necessary so set a daily task to end the working day, Likewise, start on time and start the working day with a particular task, perhaps one of those frogs that you’ve been meaning to deal with that need your full attention whilst you’re wide-eyed. Make sure you take a lunch break too and figure out a break-out space where you can switch off when you need to.

4. COMMUNICATE

Get digital and communicate with humans. If you are not already on Zoom, where have you been? Working from home now is easier than it has ever been with more cloud technology and digital tools available. Keep in touch with clients, suppliers and your team by video call, and don’t forget you can do the same for friends and family. Schedule video calls as you would normally have meetings and if you don’t fancy seeing yourself on camera, phone calls still work too.

5. STAY MOTIVATED & MOVE

In order for your to stay motivated, get up and move! Why not try an online yoga lesson or get outside and go running or walking.  Remember to get up from your desk. Try to keep to a routine and exercise so you are refreshed and ready to take on the day ahead.  The websites and apps we love that motivate us include the following:

The Body Coach – Free HIIT workouts and recipes on YouTube
Down Dog App – Yoga, HIIT or 7 Minute Workouts
Chris Hemsworth Centr App – Free trial, sessions include HIIT, boxing and yoga
Headspace and Calm App – To help with mediation
Mindbody App – Virtual classes

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FUSE is an independent Chartered Certified firm of accountants and tax advisors based in Highgate Village, North London. We provide a dynamic range of services to clients working in property, media, entertainment and professional services. Our clients vary in size from self employed sole traders, small enterprises and medium size businesses. We believe that comprehensive financial planning and sound business financial advice are the keys to growth and profitability.