People working from home must make sure they claim vital tax benefits.

Nick Brook, who runs TaxAssist Accountants in Huddersfield, said the message was especially relevant to a growing number of “mumpreneurs” as figures showed that almost two-thirds of the 500,000 people starting their own business last year were mothers with children under the age of 10.

With full-time annual childcare costs for two children now reaching £11,702, almost half of mothers surveyed by Direct Line for Business believed they would be better off financially if they started a business from home as well as benefiting from more flexible working hours.

Lockwood-based Mr Brook said: “While setting up your own business can be a daunting prospect, with the cost of childcare spiralling, it can have significant benefits, offering more flexible working and the potential to be more tax efficient – as long as you know what you can claim.

“Over 70% of new businesses are now started from home and with better wireless connections and the use of smart phones and tablets, many local small businesses continue to be run from home. Knowing how to manage cash flow is essential and business owners should ensure that they benefit from any support available.

“HM Revenue & Customs will allow you to offset a share of some household bills to reduce the tax you pay, based on the layout of your home and the amount of time you spend there.

“These can include mortgage interest, insurance, rent, utility costs and rates as well as a percentage of phone line rental, the cost of business calls and expenditure on internet connections.

“Coupled with savings on premises and transport costs, working from home can be very effective for many small business owners.”