How to claim work from home tax relief in the UK
If you work from home, you may be eligible for work from home tax relief on some of your expenses. This will depend on whether working from home is a choice or is required by your work.
The amount of tax relief you can claim depends on how much your tax band and how much you spend on work-related expenses. When using the standard rate of relief, individuals paying the Basic Rate of tax can get up to £62 per year in tax relief, while those paying the Additional Rate of tax can get up to £140 per year.
It is worth noting that the tax relief for working from home is not a special scheme, but simply one of the job expenses you can claim tax relief on if they are not paid for by employers. You can click here to read our post on tax relief for travel expenses.
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Who Can Claim Work from Home Tax Relief?
Just like tax relief for other work expenses, you can only claim tax relief on working from home when your employer gives you no alternatives and they do not already reimburse you for those costs.
You can claim tax relief if you work from home and:
- Your employer requires you to work from home, or requires you to travel an unreasonable distance every day to reach their office.
- Your employer does not have an office, or has no appropriate facilities for you at their office.
You cannot claim tax relief if you work from home and:
- Your employment contract allows you to work from home some or all of the time.
- You work from home because of the coronavirus pandemic.
- You work from home because your employer’s office is full.
What working from home expenses Can You Claim For?
HMRC will only allow you to claim expenses that are necessary, and are used only for work purposes. You can claim tax relief for the following expenses:
- Heating and lighting for your work area.
- Electricity for your work area.
- Phone calls made for work purposes.
- Internet access for work purposes.
- Stationery and other office supplies.
- Equipment used for work purposes, such as a computer or printer.
How Much tax relief Can You Claim when working from home?
You can claim tax relief on the full cost of the expenses listed above. However, you will have to keep accurate records to submit to HMRC. If you do not want to manage receipts, you can claim the standard rate, which assumes you spend £6 per week on the costs of working from home.
Now that you have your total expenses (either the exact amount or £6 per week), you multiply this by your tax rate to determine how much relief you will get. Using the standard £6 per week, this means that those paying the 20% Basic Rate of tax can receive £1.2 per week (£62.4 per year) in tax relief.
How to Claim Work from Home Tax Relief
To claim tax relief for your work-related expenses, you can either:
- Claim the flat rate of £6 per week. You do not need to keep evidence of your expenses if you claim the flat rate.
- Claim the actual amount of your expenses. You will need to keep evidence of your expenses, such as receipts, bills, or contracts, if you claim the actual amount.
You can work expense-related tax relief using HMRC’s online portal. If you submit a Self Assessment tax return for any reason, you must claim the relief on your tax return rather than through the online portal.
Deadline for Claiming Work expense Tax Relief
You can claim tax relief for your work-related expenses up to four years after the end of the tax year in which you incurred the expenses. For example, you can claim tax relief for expenses you incurred in the 2022/23 tax year until the end of the 2026/27 tax year. You can of course also claim relief for up to four years previous, meaning you can still claim expenses from the 2019/20 tax year in your 2023/24 tax return.
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