I have a client who is a Minister of a Church and only a salary earner. He works from home because there is no office for him at the church(he gave me supporting documents)He said that he uses his garages, parking area, Toilet, working room for groups and
Important:
This answer is based on tax law for the tax year ending 28 February 2017.
Answer:
The relevant law is found in section 23(b) - domestic premises used for trade purposes, which must be read with section 23(m) if the individual is in receipt of remuneration.
The current practice generally prevailing is that the “part that is so occupied must be specifically equipped for purposes of the trade.
The Collins English Dictionary defines “specific” to mean “relating to a specified or particular thing” and “equip” to mean “to furnish with”. The Concise Oxford English Dictionary3 defines “specific” as “relating uniquely to a particular subject” and “equip” to mean “supply with the items needed for a particular purpose”. It is clear from these definitions that, in order for a part of a private home to be considered “specifically equipped” for the purposes of trade, that part must be fitted with the instruments, tools and equipment required to conduct that trade. For example, taxpayers who meet clients at their homes would not be permitted a deduction under this head if they meet their clients in their dining or sitting rooms. A separate office would need to be equipped and maintained. An office that requires specialised equipment, such as a mechanic’s tools, an architect’s drawing board or a doctor’s examination room equipment, must be equipped with these items.
The part must be regularly and exclusively used for purposes of the trade.”
“Typically, home office expenditure will be the type of expense referred to in section 23(b), namely, –
• rent of the premises;
• interest on bond;
• cost of repairs to the premises; and
• other expenses in connection with the premises.
In addition to these expenses, other typical home office expenditure may include –
• phones;
• stationery;
• rates and taxes;
• cleaning;
• office equipment; and
• wear-and-tear.”