How to Claim Home Office Expenses (2026)
With remote work becoming increasingly common, many South African taxpayers are eligible to claim home office expenses on their tax returns. Understanding the requirements, what expenses qualify, and how to calculate deductions helps you maximize legitimate tax savings. This comprehensive 2026 guide covers everything you need to know about claiming home office expenses in South Africa.
What Are Home Office Expenses?
Understanding Home Office Deductions
Definition:
- Expenses related to using part of your home for business
- Deductible portion of home expenses
- Based on business use of home
- Must meet SARS requirements
Purpose:
- Reduce taxable income
- Claim legitimate business expenses
- Offset costs of working from home
- Comply with tax regulations
Key Concept:
- Only business portion deductible
- Must meet specific requirements
- Requires proper calculation
- Must be supported by evidence
Who Can Claim Home Office Expenses?
Eligibility Requirements
You Can Claim If:
- You work from home regularly
- You have a dedicated workspace
- Space is used exclusively for business
- You meet SARS requirements
- You're an employee or self-employed
Specific Criteria:
- Dedicated room/area for work
- Used regularly and exclusively for business
- Principal place of business (for self-employed)
- Or employer requires you to work from home
Employees vs. Self-Employed
Employees:
- Must meet strict requirements
- Employer must require work from home
- Or no office provided by employer
- More limited deductions
Self-Employed:
- More flexibility
- If home is principal place of business
- Easier to meet requirements
- More expenses may qualify
SARS Requirements
Exclusive Use Requirement
Key Requirement:
- Space must be used exclusively for business
- Not used for personal purposes
- Dedicated workspace
- Regular business use
What This Means:
- Separate room is best
- Dedicated area in room
- Not used for personal activities
- Clear business purpose
Regular Use Requirement
Regular Business Use:
- Used regularly for business
- Not occasional use
- Substantial business use
- Ongoing business activities
Frequency:
- Regular, not sporadic
- Ongoing business use
- Substantial portion of work
- Meets regularity test
Principal Place of Business (Self-Employed)
For Self-Employed:
- Home must be principal place of business
- Or used regularly for business
- More than 50% of business conducted there
- Meets principal place test
What Expenses Can You Claim?
Qualifying Expenses
Rent (If Renting):
- Portion of rent
- Based on business use percentage
- Pro-rated amount
- Supported by lease
Interest on Bond (If Owning):
- Portion of bond interest
- Based on business use percentage
- Not principal repayment
- Interest portion only
Rates and Taxes:
- Municipal rates
- Property taxes
- Based on business use percentage
- Pro-rated amount
Electricity:
- Portion of electricity costs
- Based on business use
- Actual usage if measurable
- Or percentage method
Water:
- Portion of water costs
- Based on business use percentage
- Pro-rated amount
- If used for business
Internet:
- Portion of internet costs
- If used for business
- Based on business use
- Pro-rated amount
Phone:
- Business portion of phone costs
- If used for business
- Separate line or portion
- Based on usage
Maintenance and Repairs:
- Portion of home maintenance
- Repairs to home office area
- Based on business use percentage
- Direct repairs to office area
Insurance:
- Portion of home insurance
- Based on business use percentage
- Pro-rated amount
- If home office covered
Non-Qualifying Expenses
Cannot Claim:
- Principal repayment on bond
- Capital improvements
- Personal expenses
- Expenses not related to business use
Calculating Home Office Deductions
Method 1: Square Meterage Method
Calculation:
- Measure home office area (square meters)
- Measure total home area (square meters)
- Calculate percentage: Office area ÷ Total area × 100
- Apply percentage to expenses
Example:
- Home office: 15 square meters
- Total home: 150 square meters
- Percentage: 15 ÷ 150 × 100 = 10%
- Can claim 10% of qualifying expenses
Method 2: Room Count Method
Calculation:
- Count rooms used for business
- Count total rooms in home
- Calculate percentage: Business rooms ÷ Total rooms × 100
- Apply to expenses
Considerations:
- Less accurate than square meters
- May not reflect actual use
- SARS may prefer square meters
- Use if square meters not available
Method 3: Actual Usage Method
For Specific Expenses:
- Measure actual business usage
- For electricity, internet, etc.
- More accurate for variable expenses
- Requires detailed tracking
Example:
- Track electricity usage for office
- Measure actual business internet usage
- Calculate actual business phone costs
- More precise but more work
Step-by-Step Calculation
Example Calculation
Scenario:
- Home office: 20 square meters
- Total home: 200 square meters
- Business use: 10%
Annual Expenses:
- Rent: R120,000
- Electricity: R18,000
- Internet: R12,000
- Rates: R15,000
Calculations:
- Rent: R120,000 × 10% = R12,000
- Electricity: R18,000 × 10% = R1,800
- Internet: R12,000 × 10% = R1,200
- Rates: R15,000 × 10% = R1,500
Total Deduction: R16,500
Note: This is simplified. Actual calculations may vary based on specific circumstances and SARS requirements.
Documentation Requirements
Required Documentation
Supporting Documents:
- Floor plan showing office area
- Photos of home office
- Receipts for all expenses
- Calculations showing percentages
- Evidence of business use
Records to Keep:
- All expense receipts
- Calculations
- Floor plans
- Photos
- Any other supporting documents
Retention:
- Keep for at least 5 years
- In safe, accessible place
- For SARS inspection
- Support your claims
Common Scenarios
Scenario 1: Employee Working from Home
Situation:
- Employee required to work from home
- Dedicated home office
- Regular business use
- Meets requirements
What Can Be Claimed:
- Portion of rent/interest
- Portion of utilities
- Portion of rates
- Other qualifying expenses
Limitations:
- Must meet exclusive use
- Employer must require work from home
- Or no office provided
- More restrictive than self-employed
Scenario 2: Self-Employed from Home
Situation:
- Self-employed
- Home is principal place of business
- Dedicated office space
- Regular business use
What Can Be Claimed:
- More expenses may qualify
- Greater flexibility
- Easier to meet requirements
- More deductions possible
Scenario 3: Part-Time Home Office
Situation:
- Work from home part-time
- Also work from other locations
- Home office used regularly
- Meets requirements
Considerations:
- Must still meet requirements
- Regular use still required
- Exclusive use still required
- Calculate based on actual use
Best Practices
Accurate Calculation
Tips:
- Measure accurately
- Use square meters if possible
- Be honest in calculations
- Support with evidence
Proper Documentation
Maintain:
- All receipts
- Calculations
- Floor plans
- Photos
- Records
Regular Review
Review:
- Expenses regularly
- Calculations annually
- Update if circumstances change
- Ensure compliance
Common Mistakes to Avoid
Overstating Deductions
Mistakes:
- Claiming too high percentage
- Including non-qualifying expenses
- Not meeting requirements
- Inaccurate calculations
Consequences:
- SARS may disallow
- Penalties possible
- Interest charges
- Compliance issues
Inadequate Documentation
Problems:
- Missing receipts
- No calculations
- No supporting evidence
- Poor record keeping
Solutions:
- Keep all documents
- Maintain calculations
- Support all claims
- Organize records
Not Meeting Requirements
Issues:
- Space not exclusively used
- Not regular use
- Doesn't meet criteria
- Claim disallowed
Solutions:
- Ensure exclusive use
- Regular business use
- Meet all requirements
- Verify eligibility
SARS Verification
What SARS May Request
If Audited:
- View home office
- Verify measurements
- Check calculations
- Review documentation
- Verify business use
Be Prepared:
- Have all documentation ready
- Support calculations
- Show evidence of use
- Answer questions
Frequently Asked Questions
Can I claim home office if I'm an employee?
Yes, if you meet the requirements: your employer requires you to work from home, or no office is provided, and you have a dedicated, exclusively used workspace.
What percentage can I claim?
The percentage is based on the business use of your home, calculated using square meters, room count, or actual usage. There's no fixed percentage - it depends on your specific situation.
Can I claim if I work from home occasionally?
You need regular, not occasional, business use. Occasional use typically doesn't meet SARS requirements for home office deductions.
Do I need to own my home to claim?
No, you can claim whether you rent or own. If renting, you can claim a portion of rent. If owning, you can claim a portion of bond interest (not principal) and other expenses.
Can I claim furniture and equipment?
Furniture and equipment for the home office may be deductible, but they're typically capital expenses subject to different rules (depreciation, wear and tear allowances). Consult a tax practitioner for specific advice.
What if my home office is part of a room?
You can still claim, but you need to accurately calculate the business use portion. The exclusive use requirement still applies to that portion.
How do I prove exclusive use?
Photos, floor plans, and documentation showing the space is dedicated to business use help. The space should not be used for personal activities.
Conclusion
Claiming home office expenses can provide legitimate tax savings for South African taxpayers who work from home. By understanding the requirements, accurately calculating deductions, maintaining proper documentation, and ensuring you meet SARS criteria, you can successfully claim home office expenses while maintaining compliance. Remember that the exclusive and regular use requirements are strict, and accurate calculations and documentation are essential.
For complex situations or if you're unsure about eligibility, consider consulting a qualified tax practitioner.
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