Tax Relief: Working From Home - Robinsons London

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Tax Relief: Working From Home

Since April, almost 800,000 employees across all professions who have been working from home during the pandemic, have already claimed tax relief working from home on household related costs, HM Revenue and Customs has revealed.

The saving is worth up to £125 per year for each employee, and eligible workers can claim the full year’s entitlement if they have been told to work from home by their employer, even if it has been for one day during the tax year.

Employees who have either returned to working in an office since early April or are preparing for their return can still claim the tax relief working from home and benefit from the full year’s relief for the 2021 to 2022 tax year.

Employees can apply directly themselves and receive the full tax relief. Once their application has been approved, their tax code will be automatically adjusted for the 2021 to 2022 tax year, receiving the tax relief directly through their salary.

 

What Can I Claim?

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.

You may be able to claim tax relief for:

  • gas and electricity
  • metered water
  • business phone calls, including dial-up internet access

You cannot claim for the whole bill, just the part that relates to your work.

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 have any questions or would like to see if your eligible for the grant

Speak to the Robinsons team