Is home your main place of business? If you are a sole trader or operate your business as a partnership, you may be able to claim some running expenses if your home is your main place of business. This can include the cost of electricity, cleaning and depreciation of business assets.

One of the following methods can be used to calculate your expenses:

• Actual cost method
• 52 cents per work hour fixed rate, which covers heating cooling, lighting, cleaning and depreciation of furniture and furnishings
• 80 cents per work hour temporary shortcut method, available from 1 March 2020 to 30 June 2021 and covers all expenses

The methods cover different expenses, so it is important that you keep good records and check the details of each method to work out which one will work best for you.

You may also be able to claim occupancy expenses if you have a specific area of your house with the character of a “place of business” set aside. This would not include, for example, your dining room table.

If your business is a trust or company, you should have a market-rate rental contract. This will determine what expenses you may be able to claim as a deduction.

You can only claim deductions for the portion of your expenses related to running your business.

And remember, we are available to discuss these with you to determine what your best option is.