Home Office: To Have Or Not To Have?

A home office is a designated space in a person's residence used for official business purposes. It is beneficial for several reasons. Firstly, it provides a quiet and focused space to work, store important paperwork, or read without interruptions. Secondly, it can improve your work-life balance by creating a physical distinction between your professional workspace and domestic family space. Thirdly, a home office can offer tax benefits, as some expenses related to the home office may be deductible. Additionally, having a home office can increase the value of your home and make it more desirable to potential buyers. However, there are also challenges to consider, such as the blurring of boundaries between work and personal life, feelings of isolation, and the need to set aside space in your home for the office. Ultimately, the decision to have a home office depends on individual preferences and circumstances.

Remote work is the new normal

The pandemic has also made us more tech-savvy, with video conferencing software becoming the norm for many. This shift to remote working has resulted in a talent pool that is now global and diverse, with companies able to access talent from all over the world.

The benefits of remote working are clear. It offers reduced commutes, more time with family, fewer distractions, and a healthier lifestyle. It also provides employees with the freedom to relocate, no longer being tethered to a physical office. This has the potential to drive new levels of prosperity within cities, as highly skilled workers move to cheaper locations.

However, working from home may not be for everyone. Some may struggle with the lack of interpersonal collaboration, while cyber-crimes have also increased as hackers target those working from home.

Overall, remote working is here to stay, and companies must embrace this new normal, adopting remote working tools and finding new ways to form meaningful relationships with colleagues and clients.

If you are working from home, having a dedicated home office space is essential. A home office provides a quiet, focused space, free from distractions, and allows you to create a professional setup for online meetings. It also helps to establish boundaries between work and home life, which is crucial for maintaining a healthy work-life balance.

Tax benefits

There are several tax benefits to having a home office in the UK, although the specifics depend on whether you are self-employed or employed by a company.

Self-employed tax benefits

If you are self-employed, you can claim tax relief on expenses incurred while working from home. This includes:

• Utility bills (gas, electric, water)
• Home contents and buildings insurance
• Telephone, internet, and mobile phone bills
• Rent or mortgage interest
• Advertising/marketing and training fees
• Office equipment and furniture

There are two methods to calculate these deductions: simplified expenses and actual costs. Simplified expenses are based on the number of hours worked from home, while actual costs take into account the proportion of your home used for business purposes and your total running costs.

Employed tax benefits

If you are employed, you may also be able to claim tax relief on certain expenses incurred while working from home. However, this is subject to certain conditions, such as your job requiring you to live far away from your office or your employer not having an office. Eligible expenses include:

• Business phone calls
• Gas and electricity for your work area

You can claim tax relief on either a fixed amount of £6 per week or the exact amount of extra costs incurred, for which you will need evidence such as receipts, bills, or contracts.

Work-life balance

Working from home can have a significant impact on your work-life balance. It can be beneficial in terms of saving time and money, and it can also improve your overall well-being.

One of the most significant advantages is the time saved by eliminating the daily commute. The average one-way commute in the US is 26.1 minutes, which amounts to almost an hour of extra time that can be spent on work, leisure, or sleep. This extra time can improve your work-life balance by providing more flexibility in your schedule.

Additionally, working from home can lead to a healthier lifestyle. Without a commute, you may be more inclined to exercise, such as going for a run or starting your day with a workout. A healthier diet is also more feasible when working from home, as you have more time to prepare meals and are less likely to opt for convenience foods or eat out.

Another benefit of working from home is the ability to create a personalised and comfortable work environment. You can add decorations, plants, and personal items that make you feel relaxed and motivated. This can enhance your overall job satisfaction and improve your work-life balance by making work feel less like a chore.

However, working from home can also blur the boundaries between work and personal life. It can be challenging to disconnect from work when your office is in your home. Establishing a dedicated workspace and setting clear boundaries can help maintain a distinction between your professional and personal life.

It is also important to be mindful of distractions when working from home. Family members, pets, and household chores can interrupt your workflow and impact your productivity. To maintain a healthy work-life balance, it is crucial to set boundaries and create a work environment that minimises potential disruptions.

Overall, having a home office can improve your work-life balance by saving you time and creating a comfortable and personalised work environment. However, it is important to establish boundaries and minimise distractions to ensure that your work does not overtake your personal life.

Health and wellness

Working from home can be a great opportunity to improve your health and wellness, but it also comes with challenges. Here are some tips to help you stay healthy and well-balanced while working from your home office:

Physical Health

• Stay Active: Take breaks during your workday to get up and move around. Set a timer if needed—for example, a five-minute break for every hour of work. Stretch throughout your day, and if you have a pet, take breaks to play with them. If you have a dog, you can take them for walks, which will benefit both of you.
• Ergonomics: Ensure your home office setup supports your physical well-being. Adjust your chair height so your feet rest flat on the floor, and use a footrest if needed. Keep your monitor directly in front of you, about an arm's length away, with the top of the screen at eye level. Place necessary resources, such as your phone, printer, and task light, within arm's reach.
• Lighting: Provide adequate lighting to avoid eye strain. Avoid harsh fluorescent lights and opt for softer lighting or natural daylight.
• Healthy Eating: With the kitchen just a few steps away, it's important to make healthy choices. Stock your fridge with nutritious snacks and meals.

Cognitive Health

• Nature: Bring elements of nature into your home office. Place houseplants in your workspace, and position your desk to have a view of the outdoors if possible.
• Breaks: Give yourself breaks to reduce stress and boost creativity. Follow the 20/20/20 rule: every 20 minutes, look away from your computer monitor and focus on something 20 inches away for 20 seconds. Take longer breaks of 15-20 minutes every couple of hours to decompress.
• Unplug: Set boundaries and log off for the night to signal to your mind that your work is done for the day.

Emotional Health

• Socialize: Stay connected with colleagues and friends. Use video conferencing to stay engaged and maintain relationships. Be creative with virtual social activities, such as playing games or taking online classes together.
• Set Boundaries: Create dedicated work hours and separate work and home zones to maintain a healthy work-life balance. Keep your office off-limits to children and pets to ensure uninterrupted work time.

Resale value

If you're considering adding a home office to your property, it's worth noting that it can be a great investment that will boost your home's resale value. Here are some insights on how a home office can impact the resale value of your property:

Increased Functionality and Demand

Having a dedicated home office is becoming increasingly desirable for buyers, especially with the rise of remote work. Many potential homebuyers will be looking for a property that offers the functionality of a separate workspace, ensuring privacy and a quiet environment for work. This added functionality can be a significant selling point and increase the resale value of your home.

Higher Resale Value

The presence of a home office can significantly boost the value of your property. According to sources, adding a home office can increase your home's value and make it easier to sell if you decide to move. This is especially true if your target buyers are those who work from home, as they will appreciate having a designated workspace already set up for them.

Cost Considerations

It's important to consider the costs associated with adding a home office. Constructing an entirely new room can be expensive, with prices varying depending on the area. On average, a dedicated office space can cost around $30,000. While this may seem like a significant investment, it is likely to pay off in the long run, as your home will get a financial boost from offering this popular feature.

Alternative Options

If adding an entirely new room is not feasible, there are alternative options to consider. You can convert existing spaces, such as a spare bedroom or garage, into a home office. This can be a more affordable way to create a separate workspace without incurring the high costs of adding a new room.

Impact on Work-Life Balance

When working from home, creating a physical distinction between professional workspace and domestic family space is crucial for maintaining a healthy work-life balance. A home office allows you to establish boundaries and ensure that your work doesn't intrude on your personal life. This can be an attractive feature for buyers who are seeking a similar balance in their lives.

In conclusion, adding a home office to your property can be a great way to boost its resale value. With the changing nature of work and the increasing demand for remote work, having a dedicated workspace is becoming increasingly important for homebuyers. By investing in a home office, you can enhance the functionality of your property, cater to the needs of modern buyers, and ultimately increase the resale value of your home.

Frequently asked questions