If you are an employee working from home, you may be able to claim tax relief for some of the bills you pay that are related to your work.
Employers can reimburse employees for the additional household expenses incurred through regularly working at home.
The relief covers expenses such as business telephone calls or heating and lighting costs for the room you are working in. Expenses that are for private and business use (such as broadband) cannot be claimed. Employees may also be able to claim tax relief on equipment they have bought, such as a laptop, chair or mobile phone.
Employers can pay up to £6 per week (or £26 a month for employees paid monthly) to cover an employee’s additional costs if they have to work from home. Employees do not need to keep any specific records if they receive this fixed amount.
If the expenses or allowances are not paid by the employer, then employees can claim tax relief directly from HMRC. Employees will get tax relief based on their highest tax rate. For example, if they pay the 20% basic rate of tax and claim tax relief on £6 a week, they will get £1.20 per week in tax relief (20% of £6). Employees can claim more than the quoted amount but will need to provide evidence to HMRC. HMRC will accept backdated claims for up to 4 years.
These tax reliefs are available to anyone who has been asked to work from home on a regular basis, either for all or part of the week including working from home because of coronavirus.
If your employer has requested that you work from home you can claim tax relief for some of the bills you pay that are related to your work. These tax reliefs have always been available, but as many of us are now being instructed to work from home, a claim for the use of your home, from your employer or HMRC, may be relevant.
Employers can reimburse employees for the additional household expenses incurred through regularly working at home. The relief covers expenses such as business telephone calls or heating and lighting costs for the room in which you are working. Expenses that are for both private and business use (such as broadband) cannot be claimed.
Since 6 April 2020, your employer can pay you up to £6 per week (or £26 a month for employees paid monthly) to cover your additional costs if you have to work from home. These figures increased from £4 per week (or £18 a month for employees paid monthly) up to 5 April 2020. You will not need to keep any specific records if you receive this fixed amount.
Alternatively, you can claim tax relief from HMRC. You can claim more than the quoted amount, but you will need to provide evidence. Note, if you have agreed with your employer to work at home voluntarily, or you choose to work at home, you cannot claim tax relief on the bills you have to pay.