Claiming tax relief when working from home

Claiming tax relief on working from home expenses

With millions of employees expected to work from home due to Covid-19, HMRC reports it has been inundated with tax relief claims.

If your employer requires you to work from home, as a taxpayer, you may be able to claim £6 per week against your taxable income.

No proof is required when claiming the flat rate of £6 per week, so there’s no need to keep receipts or similar records to justify the claim. If you are claiming more than this amount, you will need to retain proof.

The fixed rate claim can be made on the self-assessment tax return and is worth £1.20 for basic rate taxpayers (£6 @20%) and £2.40 for higher rate taxpayers (£6 @40%). Of course, the claim can only be made for weeks worked at home, not when back in the office. If you don’t complete a Tax Return the claim can be made online or by post.

Alternatively, employees can ask their employers to pay the £6 per week to them but given the current financial circumstances of many businesses, it’s not likely that many businesses will have the money to do this.

If you’d like to understand how to optimise your tax position and use the tax reliefs available to you, please get in touch and we can talk you through your options.

Please email Julia Gallagher or Helen Sewell or call 01527 558539 to find out how we can help you.

working from home