Is workspace at home tax deductible for self-employed?

November 10, 2023

Is workspace at home tax deductible for self-employed?

Many self-employed people start working from home, with the attic and study rooms being particularly popular. As a bookkeeper, we often get asked which costs for self-employed individuals working from home are deductible for the tax. We will gladly explain this to you. This article specifically applies to entrepreneurs who pay income tax, so these rules do not apply to BV’s and NV’s.

As you know, all costs incurred for the business interests of your company are tax deductible. For example, a laptop or phone that you only use for work is always deductible. There are exceptions for non-fully business-related costs such as furnishing costs. These costs are not always deductible for self-employed individuals working from home. This depends on whether you work in an independent workspace or not.

Independent workspace

A workplace is an independent workspace if it has sanitary facilities and a separate entrance. So, in theory you could rent out this place separately to a stranger. An attic room, study room, or room in a rental property often does not meet the independence criterion. They often do not have their own entrance or sanitary facilities.

No independent workspace, not deductible
If you do not have an independent workspace, the non-fully business-related costs are not deductible. Of course, regular business expenses are still deductible.

Independent workspace, deductible
Do you have an independent workspace? Then there are still a few conditions that you must meet in order to deduct the non-fully business-related costs for your workspace.

  • You must earn at least 30% of your income in your home workspace. By this we mean that, for example, 30% of the time you work from this space. Or that you use at least 30% of the square meters of this workspace only when you work and not at other times.
  • If you also work from another space such as an office, you must earn at least 70% of your income in your home workspace.
    In this case, you must work at least 70% of the time from your home workspace.

Deductible costs for independent workspace

In addition to business expenses, you can also deduct non-fully business-related costs with an independent workspace. Below is a list of costs you can consider.

  • Furnishing costs (desk chair, lamps, cabinets, decoration)
  • Business part of energy costs
  • Business part of home insurance
  • Cleaning costs (only for the workspace)
  • Painting and similar work

This article only discussed deductions for a self-employed individual working from home. When you do not work from home but rent a business property, all the costs mentioned above are deductible.

There are also several more complex deductions that apply in some cases. For example, depreciation costs, percentages of the WOZ value of your home, or interest costs on a mortgage debt. To know whether you can deduct these costs, it is best to use the tax authority's calculator. For the results of this calculator, it may sometimes be useful to consult with your bookkeeper or a tax expert.

The rules for the tax deductibility of non-fully business-related costs for self-employed individuals working from home vary depending on the situation. It is, therefore, important to carefully examine which rules apply to you so that you do not miss out on money or violate any rules.