Did you know? If you are working from home, you may be able to claim tax relief for some of the bills you pay related to your work.
Employees can be reimbursed by their employers for any additional household expenses incurred through regularly working from home. This relief covers expenses such as business telephone calls, heating and lighting. Employees may also be able to claim tax relief on equipment they have bought, such as a laptop or chair.
Employers can pay up to £6 per week (or £26 a month for employees paid monthly) to cover an employee’s additional costs if they have to work from home. Employees do not need to keep any specific records if they receive this fixed amount.
If your employer does not want to pay these expenses then employees can claim tax relief directly from HMRC. Employees will get tax relief based on their highest tax rate. Employees can claim more than the quoted amount but will need to provide evidence to HMRC and they will accept backdated claims for up to four years.
These tax reliefs are available to anyone who has been asked to work from home on a regular basis, either for all or part of the week including working from home because of coronavirus.
If you would like any advice on working from home and tax relief then please get in touch.