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Home office expenses and tax deductions

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By Ashley Mhona and Willem Oberholzer … Can the expenses incurred as a result of working from home – electricity, rent or mortgage bond repayments (home office expenses) – be claimed as a tax deduction against the income earned by employees? The answer is not a simple yes or no. 

Section 23(b) of the Income Tax Act prohibits the deduction of domestic and private expenditure related to premises not occupied for trade or of any dwelling, such as a house or domestic premise, and section 23(m) prohibits the deduction of expenditure related to any employment of a person in respect of which they derive any remuneration.

To put it bluntly, … [READ the FULL ARTICLE on IOL]

Conclusion 

Employers have feasible relief at their disposal, to help employees ride out the lockdown. However, it is imperative to note that, for any method elected, evidence must always be maintained to discharge the onus that an amount is deductible, or not taxable.

Ashley Mhona is a tax consultant at Probity Advisory and Willem Oberholzer CA(SA), MCom (Tax) is the chief executive of Probity Advisory.

[READ the FULL ARTICLE on IOL]

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