How To Set up a Home Office

As a Sole Trader, you may work from home in a dedicated space or you may work from the cab in your van or a corner of the kitchen table, whichever way, every business needs an office equipped with the basics and this is a claimable expense that reduces your tax liability and helps you to run your business

The work you do (and who for) will disctate the level of administration and record keeping you need to manage

Decide on the kind of office space, equipment and supplies you will need

STEP 2

Even if you don't have a dedicated space, allocate a place to work on administration and filing your records

You can claim for a Home Office as a business expense no matter what

Be creative and design a comfortable room or other space that suits your needs, commitments and style

Read my article: What is a Home Office and why do you need one?

This could be comprehensive or it could be a simple expanding file with a few arch lever files and file boxes

Decide what can be thrown away or deleted, put on hold, actioned or filed

Write down everything you need to equip your office with furniture, stationery, IT system and storage



Read my article: What is a Home Office and why do you need one?

Design an index for folders and files, create folders on your computer or laptop, label folders, name every file

Think about the process, label things so that you can find them quickly

Paper trays are a good way to capture records coming in, needing attention, waiting on hold or ready for filing

Keep receipts, invoices and bank statements in order by month

Gather together all your important documents, contracts, trusts, photo IDs and so on to keep in a safe place

Non-digital items will be increasingly valuable and rare so hold onto them

This can be a flip-phone and a laptop, choose your operating systems and smartphone apps wisely, buy a domain

Never use apps that can steal your data or lock in face/thumb biometrics

A simple cash accounting system is all you need instead of using a complex accredited digital accounting system

Read my article: Why you don't need to go digital if you earn less than £20K

Add all your known appointments to your calendar including dates for filing returns, reminders and deadlines

Maintaining a paper diary or wall calendar is highly recommended

Making the most of your space in your own style creates the best environment for focused work and creativity

It doesn't have to be new, you may already own most of what you need

Further Information