Having your own business at home is a dream of many people. Flexibility, independence and time saving are just some of the advantages of this form of work. However, before you set up an office in a living room, it is worth knowing the fixed costs of running a sole proprietorship in your store.
Spis treści
Rent or mortgage interest
If you are the owner of the apartment in which you run your business, you can include part of the rent or interest on the mortgage as tax-deductible costs. It is important that you separate the part of the apartment intended only for business purposes. The more space your home office occupies, the more of the cost you can deduct.
Example:
Let’s say your apartment is 60 m² and the room you work in is 15 m². In this case, you can deduct 25% of the cost of rent or interest on your mortgage (15 m² / 60 m² = 0.25).
Utilities: electricity, water, heating
As with rent, you can deduct some of the costs of utilities such as electricity, water, and heating. Remember to include only the part that falls on the area used for the business.
Tip:
To make settlements easier, it is worth installing separate electricity meters in your home office.
Internet and telephone
Constant access to the Internet and telephone are indispensable tools in most companies. You can fully include the costs of the Internet and telephone subscription as tax-deductible costs, provided that you use them only for business purposes.
Office equipment and equipment
A computer, printer, scanner, desk, armchair – these are just some of the elements of home office equipment. You can settle the costs of purchasing office equipment in two ways:
- One-time: if the value of the equipment does not exceed PLN 10,000, you can include the entire expense in the costs in the month of purchase.
- Depreciation: if the value of the equipment exceeds PLN 10,000, you must account for it through depreciation, i.e. gradual recognition as a cost in subsequent years.
Software
Computer programs, applications and licenses necessary to run a business can also be included in tax-deductible costs. In the case of low-value software, you can settle it once, and in the case of more expensive software – through depreciation.
Insurance
The insurance of the apartment in which you run your business may be higher than in the case of an apartment used only for private purposes. You can include part of the insurance premium in tax deductible costs, in proportion to the area occupied by the office.
Taxes and social security contributions
If you run a sole proprietorship, you must pay taxes and social security contributions. The amount of contributions depends on the chosen form of taxation and your income. Remember that social security contributions are a fixed cost that you have to incur regardless of whether you make a profit or a loss.
Accounting
If you are not familiar with accounting, it is worth commissioning bookkeeping to an accounting office. The cost of accounting office services can be included in tax deductible costs.
Banking fees
Maintaining a business bank account is associated with fees for its maintenance, transfers and other services. These costs can be included in tax deductible costs.
Advertising and marketing
To get customers, you need to promote your services or products. Advertising and marketing costs, such as online advertising, leaflets or business cards, can be included in tax deductible costs.
Summary
Running a self-employed business unit at home is associated with many benefits, but also with costs. Knowing the fixed costs of running a business will allow you to better plan your budget and optimize your expenses. Keep in mind that most of the costs are tax-deductible, which will save you money.
