What tax relief can I claim due to Working From Home?
How to claim tax back for working from home during Covid-19
The coronavirus pandemic led to government instructions to work from home in order to contain the virus, and although the impact has eased, many employers continue a work from home policy for their staff.
The work from home tax relief is intended to cover additional household bills associated with working from home – increased energy costs, for example, and metered water. So what are the rules around claiming work from home tax rebates, and how much are you entitled to claim?
Can I claim working from home tax relief?
Even if you’ve only worked from home for one day during the tax year, you may still be eligible to claim tax relief. Your employer must have requested that you work from home – if you’ve asked to work from home yourself you won’t be eligible.
You need to:
- Have been requested to work from home by your employer
- Worked from home because of the pandemic
- Not received payment for your expenses by your employer
- Not filed a self-assessment tax return
This tax relief is only available for employees, so if you’re self-employed or work from home as a freelancer you need to use the self-assessment tax system as normal.
How do I claim work from home tax relief?
The government has set up a micro site for claiming work from home tax rebates. It offers a quick and easy way to make a claim, and takes you through the eligibility criteria using various questions related to the above points.
You make your claim via the government portal using a Government Gateway ID and password. You’ll need your National Insurance number, a recent payslip or P60, or your passport.
How much tax relief can I claim for working from home?
You can claim a flat rate of £6 per week - a total of £125 for the year. If you believe your work from home costs amount to more than this, you’ll need to provide evidence of your costs and apportion them so that you only claim the home working element.
There are two ways you can receive this tax relief:
- Your employer can pay you £6 per week tax-free
- You can make a claim via the government’s online portal
Employers aren’t obliged to pay you the additional £6 per week, and with so many businesses struggling financially due to the pandemic you may decide that making your own claim online is the best option.
If you haven’t already claimed for the 2020/21 tax year you can do so when you claim for 2021/22.
Additional eligibility for work from home tax relief
If you’re an employee but also submit a tax return via self-assessment because you have complex tax affairs or higher earnings, you can still claim the full amount of work from home tax relief.
You do this via the online self-assessment tax form under the employment section, ‘Other expenses and capital allowances.’ You can also claim the tax relief if you only work part time as an employee.
If you would like more specialist guidance on claiming work from home tax relief, we can provide a shortlist of qualified accountants in your area. Please get in touch with our expert team at Handpicked Accountants to find out more.