Did you know that you could claim tax relief when working from home? And it’s simple!
Author: Joanne Guest, Qualified Accountant at Tetbury Accounting, Witney & Carterton
Published: 24th January, 2021
Have you spent the last 9 months working from home?
Do you know that you can claim tax relief for any extra expense incurred (additional household or equipment costs) if you have been requested to work from home by your employer?
HMRC has launched an online portal to help employees understand and claim this tax relief without the need to provide receipts or make complicated calculations.
Who can claim tax relief for working from home?
You can claim tax relief for working from home if:
- You have been told explicitly by your employer that you must work from home due to the current COVID-19 pandemic.
- You have not received home expense payments directly from your employer.
How much can you claim on tax relief when working from home?
If you opt for the no-receipts route, your tax relief claim will be based on a set rate of £6 per week during your period of working from home, as long as it meets the requirements listed by the HMRC website as mentioned above.
How it works:
For basic rate taxpayers earning between £12,500 to £50,000 a year:
The relief is worth 20% of this £6, so you could receive £1.20 per week.
For higher rate taxpayers earning above £50,000 a year:
The relief is worth 40% of this £6, so you could receive £2.40 per week.
Check if you are eligible through the official Gov.uk portal (click here).
What if my costs are higher than the set rate outlines above?
If your costs are higher than the set rate, you can apply for relief on the actual costs incurred through your tax return or HMRC form P87 – if you are not required to file a return. You will need to prove the actual costs and have receipts to back them up.
Other costs such as the purchase of a laptop, or an office chair that you only use for work purposes can also be claimed.
Need some advice?
We don’t charge for advice, only for the work we carry out. Get in touch today for a chat to see whether we can help you: 01993 775635
Based in Witney and Carterton, Tetbury Accounting specialises in both business and personal accounts.
“We take pride in building strong relationships with our clients, providing you with the perfect tailored service. We take health and safety seriously when we visit you – another reason why our clients love us!”
About the author: Joanne Guest is a qualified Accountant at Tetbury Accounting, based in Witney, Oxfordshire. Specialising in both personal accounts and business accounts, Joanne prides herself on building strong relationships with all clients, providing services that are professionally tailored to their needs.