Working from home has a number of complications, but it can also be highly beneficial for contractors when it comes to reducing your tax bill.

There are a number of costs that are tax deductible, but you need to be careful to be honest with the taxman and not push things too far.

Peterborough-based accountancy firm Rawlinsons recently reminded homeworkers that they can claim tax deductions on their property if they maintain office space in their home this counts even if they are using an office elsewhere on occasion.

Furthermore, utility bills can be offset against tax, although obviously only a percentage can be put through as much of the energy use will be for personal use around the home. The tax experts suggested that claims for utility use of up to £3 a week will not be questioned by HM Revenue & Customs.

It can be tricky getting to grips with all the new tax issues at hand when you first start working from home. But stick with it, there are many benefits to be had from working for yourself, a great deal of which will be improvements in lifestyle but you could also find a number of financial gains if you do your paperwork carefully.