The South African Revenue Service (SARS) has confirmed that full-time employees, who work from home are eligible to claim for home-office expenses during lockdown.
The following conditions are applicable to claim home office costs:
- Employees would have to have worked from home for a period of 6 months, from the start of the lock down to at least end September.
- If an employee’s duties are mainly performed from their home.
- Employee must work for a single employer from home.
- Employee must have a dedicated work area in the house for the purposes of working from work.
Expense types that can be claimed for working from home, include:
- Expenses such as interest on your bond, or part of the rental of the home – as well as municipal rates and taxes, including water and electricity, must be claimed relative to the exclusively apportioned workspace.
- Operational expenses, such as stationery, and data costs.
- Wear and tear on office equipment.
- Importantly, if you own your home, claiming home office expenses could cost you in extra capital gains tax (CGT) when you sell.
- In addition, if your employer reimbursed you for data costs, stationery, or other expenses – you may not have to pay tax on these payments.
- Employer’s reimbursement of an expense incurred by an employee is not taxable. if the expense has been incurred at the employer’s instruction. Examples of reimbursed expenses that would not be subject to tax would be data bundles purchased to work from home and stationery used for work purposes.
For more information send us a message.