What tax relief can I claim for working from home?

Aug 24, 2022 | Business advice, Self-employed

Working from home is now the norm for millions of people – the pandemic brought in a new format for everyone, which has led to considerable changes in how most companies operate.

When you work from home, you can claim certain reliefs. Many of these can have a great benefit to your overall tax bill.

But as of April 2022, these rules have changed, so you must understand what these changes will mean for you.

Working from home tax relief

Pre-COVID-19, you used to be able to claim £6 working from home tax relief a week without HMRC checks. Sadly, this is no longer the case – you now need to provide proof that you have to work from home, rather than just wanting to.

To prove this claim, you need to prove  at least one of the following (and also not be receiving any additional support from your employer):

  • Your job requires you to live far away from your office
  • Your employer does not have an office
  • There are no appropriate facilities available for you to perform your job on your employer’s premises.

Can I backdate my claim?

Because the rules have changed only as of April 2022, you may be able to claim to work from home, provided you answer the questions adequately.

You’ll then be judged in the following tax brackets:

  • basic rate (20%) taxpayer – you can claim £1.20 per week/£62.40 per tax year.
  • higher rate (40%) taxpayer – you can claim £2.40 per week/£124.80 per tax year.
  • additional rate taxpayer (45%) – you can claim £2.70 per week/£140.40 per tax year.

If you backdate and claim for the current tax year, you could get as much £420 if you’re an additional rate taxpayer, £375 if you’re a higher rate taxpayer and £187 if you’re a basic rate taxpayer.

How can I claim?

Use the government website microservice and follow the steps to work out if you’re eligible or not for the working from home benefit.

It’s a different process if you work for yourself – you can’t use the microservice, but you can still claim.

When you complete your online tax return, fill in the employment part’s ‘other expenses and capital allowances’ section.

For paper returns, you’ll find it in section 20 on the full return form, and section 2.5 on the short form.

What other things can I claim?

You may be able to claim for your electricity or gas bill, mobile phone, rent, equipment and council tax. But all of these require you to meet criteria specific to your situation.

In this situation, we’d always recommend talking to an advisor – they’ll be able to look at your finances and where you could claim.

This will give you a solid foundation for your claim and stop you from claiming something you’re not eligible for.

Wrapping up

If you’re unsure, talk to your advisor – that’s what we’re here for. We want you to save as much tax as possible, of course, but it’s not worth the risk if you don’t know your situation.

Get in touch with us today, and we’ll discuss your best options.

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