Products / services purchased for your own home should not be added to the UKKO Private Trader service, even if they are related to a home office.
There are two options for reducing home office costs. UKKO Private Trader applies for a home office deduction in your tax return. We ask about the use of a study in your own home with a tax return survey at the end of the year.
You can reduce your office costs if:
- you do not have a separate rented office or
- your work involves a great deal of work at home
Method 1. Schematic office deduction in the tax return
This way, you don’t have to add or keep invoices and receipts related to your home office expenses, but the deduction is made according to the tax authority's formula on your tax return.
Generally, a home office deduction is granted on a schematic basis. The schematic study room deduction covers the rent of the study room (i.e. part of the rent of your own home), furniture, light, electricity, heat and cleaning.
There are three levels of schematic home office deduction, below we have explained in general terms for which activities each level would be good:
Home office deduction 920 euros
- You don’t have a separate rented business space and you do work from your home that makes up your main income (for example, a freelance supplier)
- You do work at home, and the days working at home account for more than 50% of all workdays a year
- The home office has been used to acquire income from different sources or types of income
Home office deduction 460 euros
- You use the office part-time to earn main earnings, or permanent / substantial side income. For example, a trainer / consultant who prepares trainings at home.
- Remote working days are up to 50% of all working days per year.
Home office deduction of 230 euros
- You use the office to generate extraordinary side income.
Method 2: Home office deduction based on actual costs
A deduction may also be granted on the basis of actual costs, provided that they are adequately explained.
If you have acquired a separate workspace:
You can reduce the actual cost (rent or consideration) when the workspace is reserved exclusively for work. You can also deduct other costs (including electricity and sanitation costs and any property tax).
How does UKKO ask for this information when it comes to workplace reductions based on actual costs?
At the end of the year, UKKO needs information:
1. the total cost of the dwelling / property on a monthly basis.
2. Total area of the dwelling / property.
3. Area used by the business.