TaxClaw
"Can I Claim for My Home Office?" The A-Z Guide for Remote Workers
Working from home? Learn the strict SARS rules for claiming home office expenses. Find out who qualifies, what you can deduct (rent, internet, etc.), and how to calculate it.
Since remote work has become common, "Can I claim my home office?" is the number one question taxpayers ask.
The short answer is yes, you can, but the SARS rules are notoriously strict. If you make a claim incorrectly, SARS will disallow it and may even charge understatement penalties.
Before you claim, you must be 100% sure you qualify. This guide will walk you through the exact requirements.
The 3 "Golden Rules" to Qualify
You must meet ALL of these conditions to claim.
Rule 1: The "Exclusive Use" Test
This is the one that disqualifies most people.
The space you claim must be a dedicated room (like a study or a converted spare bedroom) that is regularly and exclusively used for your work.
- What it means: "Exclusively" is the key word. It cannot be a dual-purpose room. A desk in your dining room, a corner of your bedroom, or your kitchen table does not qualify.
- If SARS audits you, they can ask for photos or even do an inspection. If they see a bed or a dining table in the "office," your claim is disallowed.
Rule 2: The "Mainly" Test (for Salaried Employees)
This rule applies if you are a full-time employee.
You must perform more than 50% of your total work duties in this home office.
- What it means: If you are a "hybrid" worker who goes to the corporate office 3 days a week and works from home for 2, you do not qualify. You are only working from home 40% of the time.
- You must work from home more than half of the time. You will likely need a letter from your employer confirming this arrangement.
(Note: This "mainly" test does not apply if 50% or more of your income is from commission).
Rule 3: The "Specifically Equipped" Test
Your office must be specifically equipped for your work. This is generally an easy test to pass—it just means it has your work desk, chair, computer, internet connection, etc.
I Qualify! What Can I Claim?
If you meet all three rules, you can claim a portion of your household expenses. You can't claim your whole electricity bill!
The portion you can claim is based on the square meterage of your home office compared to the total square meterage of your home.
The Calculation:
(Square Metres of Office) / (Total Square Metres of Home) = % to Claim
Example:
- Your home office is 10 m² (2m x 5m)
- Your entire home (including garage) is 100 m²
- Calculation: 10 / 100 = 0.10, or 10%
You can now claim 10% of the following expenses:
- For Renters:
- Rent
- For Homeowners:
- Interest on your bond (you cannot claim the capital repayment part)
- Rates and taxes
- For Everyone:
- Electricity and water
- Home insurance (if applicable)
- Repairs to the property (e.g., fixing a roof leak, painting the house). Repairs specific to the office (like replacing a lightbulb) can be claimed 100%.
What about Internet and Phone Costs?
- Fibre/Internet: You can claim the business portion. If you use it 80% for work and 20% for personal streaming, you can claim 80% of the cost.
- Phone: You can claim the cost of your work-specific calls.
What about Furniture and Equipment?
You can't claim the full cost of your R10,000 desk in one go. This is a capital expense. Instead, you claim "wear and tear" on it, typically over 3-6 years.
The Big "Catch": Capital Gains Tax (CGT)
This is the most important warning:
When you sell your primary residence, you are normally exempt from Capital Gains Tax (CGT) on the profit (up to R2 million).
However, the moment you claim a part of your home as an office, that part of your home is now considered a business asset. This means when you sell your home, the portion you claimed as an office will be subject to Capital Gains Tax.
You are sacrificing part of your future tax-free exemption for a small deduction today.
Verdict: Should You Claim?
- If you are a renter: Yes, absolutely. You have nothing to lose, and the rent deduction can be significant.
- If you are a homeowner: You must be very careful. Consult a tax practitioner. For many people, the small refund today is not worth the future CGT liability.
Claiming for a home office is a major red flag for a SARS audit. If you're not 100% compliant, it's safer to not claim.
Disclaimer: This article is for informational purposes only and does not constitute financial or tax advice. The rules for home office deductions are extremely complex and have significant financial consequences, such as Capital Gains Tax. We strongly recommend consulting with a registered tax practitioner before making any claim.