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Claim tax relief if working from home

4 April 2024

If you are an employee who is working from home, you may be able to claim tax relief for part of your household bills that are related to your work.

Claiming Tax Relief for Home-Based Work

If you are an employee who is working from home, you may be able to claim tax relief for part of your household bills that are related to your work. If your expenses or allowances are not paid by your employer, you can claim tax relief directly from HMRC.

You can claim if you have to work from home, for example because:

  • the job requires you to live far away from your office; and/or
  • your employer does not have an office.

Tax relief is not usually available if you choose to work from home. This includes if your employment contract lets you work from home some or all of the time or if your employer’s office is unable to accommodate you.

 

Details of Tax Relief for Employees

Employees can claim a tax relief of £6 per week. This is for additional costs if they work from home. Or, they can claim £26 a month if they’re paid monthly. They don’t need to keep specific records for this fixed amount.

The amount is based on the employee’s highest tax rate. For instance, if you pay a 20% basic rate of tax, you can claim tax relief. If you claim on £6 a week, you’ll get £1.20 per week in tax relief. That’s 20% of £6. Employees can also claim the exact amount of extra costs. But they’ll need to provide evidence to HMRC. HMRC accepts backdated claims for up to 4 previous tax years.

 

Additional Tax Relief Opportunities

Employees may also be able to claim tax relief for using their own vehicle, be it a car, van, motorcycle or bike. As a general rule, there is no tax relief for ordinary commuting to and from your regular place of work. The rules are different for temporary workplaces where the expense is usually allowable or if an employee uses their own vehicle to do other business-related mileage. Employees may also be able to claim tax relief on equipment they have bought, such as a laptop, chair or mobile phone.

Source: HM Revenue & Customs Tue, 02 Apr 2024 00:00:00 +0100

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