Updated: Jun 23, 2021
With many of us working from home during the COVID pandemic household bills may have increased. HMRC have set out guidelines to check if you are eligible to claim tax relief for your work related expenses:
Working from home
You may be able to claim tax relief for additional household costs if you have to work at home on a regular basis, either for all or part of the week. This includes if you have to work from home because of coronavirus (COVID-19). You cannot claim tax relief if you choose to work from home. Additional costs include things like heating, metered water bills, home contents insurance, business calls or a new broadband connection. They do not include costs that would stay the same whether you were working at home or in an office, such as mortgage interest, rent or council tax.
You may also be able to claim tax relief on equipment you’ve bought, such as a laptop, chair or mobile phone.
How much you can claim
You can either claim tax relief on:
£6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) - you will not need to keep evidence of your extra costs
the exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts
You’ll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20% of £6).
If you are unsure if you can claim get in touch with one of our team today on 01420 541 554 or visit: https://www.tax.service.gov.uk/claim-tax-relief-expenses/only-claiming-working-from-home-tax-relief