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Home Office Tax Claims in 2025: What Employees and Freelancers Need to Know

As hybrid and remote work become part of the everyday landscape, more South Africans are asking whether they can claim home office expenses from SARS. While deductions are possible, the rules are strict, and claims that aren’t properly substantiated could trigger an audit.

What SARS Requires for a Valid Home Office Claim

SARS has been clear: the legislation governing home office expenses has not changed. To qualify for a deduction, you must meet these requirements:

  • Exclusive use: A separate office space, appropriately equipped, must be set up at your primary residence. It cannot double as a guest room, lounge, or study used for personal purposes.

  • Regular and primary use: The office must be used regularly and exclusively for work.

  • More than 50% of duties: If you are a salaried employee, more than half of your duties must be performed in this office. For commission earners, more than 50% of your income must come from work performed away from your employer’s premises.

  • Verifiable expenses: Only costs linked directly to employment use can be claimed. All claims must be supported by records and invoices.

  • Tax return declaration: Home office expenses must be claimed under source code 4028 in your income tax return.

The Capital Gains Tax (CGT) Implication

One of the biggest pitfalls is the impact on future property sales. If your home office is in property you own, designating part of your residence as an office may reduce your primary residence exclusion of R2 million when calculating CGT.

This means that, on resale, the portion of the property allocated as a home office could be excluded from the tax-free threshold — potentially leaving you with a larger tax bill.

The Cost–Benefit Balance

While it may be tempting to claim every cent spent on working from home, it’s worth weighing the potential long-term costs:

  • You may have saved on travel, petrol, or vehicle wear and tear by working from home.

  • The loss of a portion of your CGT exclusion may outweigh the value of the deductions you receive.

  • SARS is more likely to flag first-time home office claims for verification or audit.

How KKA Attorneys Can Help

The decision to claim home office expenses is not just a short-term tax question — it’s also a long-term financial consideration.

At KKA Attorneys, we advise employees, freelancers, and businesses on:

  • SARS audits and verifications

  • Structuring compliant home office claims

  • Understanding capital gains implications

  • Resolving disputes with SARS

💻 Book your free online consultation today with one of our legal experts to ensure your tax strategy protects both your immediate deductions and your long-term financial position.