Cost for Working from Home

pemalu

Hi

My office is relocating to an unfavourable location and due to my circumstances, they are quite open for discussion.

I offered to work 50/50 between home & office. They now asked me to work out the additional cost that incurrs due to the relocation.

It's quite easy to calculate petrol cost but I'm confused as to calculate the working from home bit.

I will certainly have increased utility bill so if anybody knows how I calculate this, or if you have similar experience, that'll be great advice! My house size is around 100sqm.

Thank you.

HappyMJ

You would normally only count the cost to heat and power the one room you are using. A radiator on for 6 months of the year rated at 2kw and running for half the time therefore using 1kw per hour and you only occupying the room for 1 day per week for 8 hours would consume 8kWh of energy to keep that one room heated. The rest of the house can be heated at your own cost or all the other radiators turned off. Then multiply that by the secondary unit rate on your bill. Gas would normally cost 3.5p/kWh. So the heating cost is 28 pence per day. Multiply that by 26 weeks as you are only running the heating for 6 months would cost £7.28 per year. You could then multiply that by the number of days per week you use the room. Most companies can pay £3 per week without any tax to pay or without having to justify the amount so start from there.

undaunted

Personally I'd want the house heated not one room - you inevitably have to make a cuppa occasionally, go to the loo etc, all only necessary because you are there and not in their office.

To be fair you may also save something on not travelling to work on those days.

You'll obviously want work phone bills met & perhaps installing a dedicated line is the simplest means of doing that.

You may need to check with your insurer, mortgage co. & Local council what their position is re any extra costs for cover / commercial use / council tax, if your business involves people visiting your home you may need public liability cover, you may have extra water costs if on a meter etc.

This may be of help / interest http://www.macintyrehudson.co.uk/personal/home-aspects/home-working-expenses

pemalu

Thank you very much for your advise, great help! x