Cost of living crisis not reflected in Government's energy reclaim values

[IlCrYpTeDaTa]

Hi everyone,

Something that has been troubling me is the cost of energy and utilities while working from my home office 5 days a week. I work mainly from home as an IT contractor.
My energy bills have nearly doubled in the last year. Mainly from the increase in the cost of energy and also the additional capacity of the energy I am using working from the home office during this time.

What annoys me about HMRC's flat rate is that it nowhere near covers the +£2k per year I am spending on energy costs whilst working from home 5 days a week. £4 per week for all utilities is a measly £208. That won't even cover my water bill. Also - the 'number of rooms divided by number of rooms used' malarkey doesn't work either because ALL energy and utilities are being consumed during office hours and not a proportion. Same with water. Why would some rooms need to pay for energy/water and others dont while working?!?!? That is just absurd.

If I wasn't home then NO additional energy would be used. So I find HMRC's calculator unfair and it puts additional strain on me as the resident with the additional costs of energy used by the business. ie. If I am working Mon-Fri 8am - 6pm and using most of the actual energy consumed in general for equipment, water used for toilets, dishes etc and then compare that to the time I actually spend relaxing at home 6pm-10pm, the energy and utilities used during work hours FAR exceeds personal consumption.

Any advice / comments? I have a cheek to actually start paying into my energy and water account directly from my business account to balance my costs. The energy used during business hours is probably around 50% of my overall bills! As an IT contractor I actually use more energy than other home workers due to all the peripherals constantly on, always recharging, multiple laptops, computers, monitors, tv screens and other devices and equipments plugged in.

[northernladuk]

How much are you saving not having to travel? If were still in the old days people would be complaining the 45p doesn't take in to account the petrol prices. It's gonna be one or the other.

[jamesbrown]

Any advice / comments?

Claim the actual amount of £6 per week, which is 50% more!

(And quit yer whining )

[Protagoras]

Claim the actual amount of £6 per week

£ 6 per week is £ 264 p.a. tax free, assuming a 44 week working year.

Just to put this in context:
2 monitors at 140W each
2 PCs at 120W each
Peripherals 110W
40 hour working week, 44 weeks of the year
28.3p/unit for electricity (UK average estimate)
works out at an annual cost for electricity alone of c. £ 314 excluding standing charges.

While it's technically possible to measure the electricity consumption of a home office, whether it would be allowable to claim actuals I don't know.

If working from home becomes too cost disadvantageous (including for travel etc), then presumably folks will seek to provide services at client premises where the energy cost paid for by the client becomes an effective subsidy!

[jamesbrown]

£ 6 per week is £ 264 p.a. tax free, assuming a 44 week working year.

Why would you multiply it by an irrelevant, made-up, number? The multiplier you’re looking for is 52. By all means, calculate and apportion your expenses if you want, but you are not going to save much and you’d better study the rules carefully. Hint: I have been 100% WFH for more than ten years and I claim the basic amount. Your time would be better spent improving your skills and turnover than worrying about tax relief on trivial sums.

[northernladuk]

It's the cost of earning 6 figures a year I am afraid.

[Protagoras]

Why would you multiply it by an irrelevant, made-up, number? The multiplier you’re looking for is 52.

44 weeks used in comparison to allow for holidays; not presuming that employees would claim this when not actually working from home.

That said, personally, this is one 'benefit' that I can't get ...

[northernladuk]

44 weeks used in comparison to allow for holidays; not presuming that employees would claim this when not actually working from home.

That said, personally, this is one 'benefit' that I can't get ...

Just do it for 52. No one is going to give a toss.

[northernladuk]

£ 6 per week is £ 264 p.a. tax free, assuming a 44 week working year.

Just to put this in context:
2 monitors at 140W each
2 PCs at 120W each
Peripherals 110W
40 hour working week, 44 weeks of the year
28.3p/unit for electricity (UK average estimate)
works out at an annual cost for electricity alone of c. £ 314 excluding standing charges.

Far too low level of detail. Who cares? Boil the kettle one less time a month and your up if it's that important to you.

While it's technically possible to measure the electricity consumption of a home office, whether it would be allowable to claim actuals I don't know.

It isn't and it's not worth it either.

If working from home becomes too cost disadvantageous (including for travel etc), then presumably folks will seek to provide services at client premises where the energy cost paid for by the client becomes an effective subsidy!

Cost disadvantageous? When it's costing £314 a year when you can claim £312. You really think people will want to travel (which costs money) just to go to the clients for these amounts of money? Just ridiculous.

[SueEllen]

All I can say about the starter of this thread - penny wise pound foolish.