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Employer letter - Why home office should be allowed as a deduction (commission earners)?



I am the financial manager of an insurance company and one of the employees has asked me to prepare a letter as requested by SARS. The letter is to motivate as to why the home office of the employee should be allowed as a deduction.

I would like to know what I need to include in the letter to make sure that the information is 100%.

LaChika says:
23 January 2013 at 16:21

1) Yes I am allowed to work from home. We are expected to work from home like I have been doing for the last 5 years since I got a laptop. I have also installed an ADSL line at home etc.

2) He earns both. His commission gets paid at the end of the financial year.

TaxTim TaxTim says:
23 January 2013 at 16:31

Please have a look at this link and go through the questions one by one to determine if you are allowed to actually claim this expense:

https://www.taxtim.com/za/can-i-deduct-home-office-expenses.php

The office at home also needs to be a completely separate room specifically for work purposes and can have no other use.

LaChika says:
23 January 2013 at 16:39

Thanks. I have forwarded your response to the employee and come back to you if he has any other further queries.

Thank you.

TaxTim TaxTim says:
23 January 2013 at 16:50

Please do and I will be glad to help!

LaChika says:
23 January 2013 at 17:12

Hi Tim,

The employee did the test and the end result is yes, that he can claim.

Thanks!

TaxTim TaxTim says:
24 January 2013 at 19:19

You need to write a letter stating that the employee is allowed to work from home and that this is included in the contract and on what basis. Also that he is paid commission and what percentage of the overall amount paid to him is commission vs salary.

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