With more people than ever working remotely—whether full-time or in a hybrid setup—it’s no surprise that many employees and directors are wondering if they can get a little tax relief for those extra household costs. The good news? You just might be able to! If you’re regularly working from home due to your job, you could claim work from home tax relief on some of your expenses. Grab a cuppa and let’s break it down!
Note: If you’re Self-Employed, different rules apply—check out this guide for the right information.
Who Can Claim Work from Home Tax Relief
Not everyone qualifies for work from home tax relief, but if you tick these boxes, you could be eligible if you:
- Work from home regularly because your office is too far, or no office is provided.
- Incur extra costs (like higher electricity or internet bills) due to working remotely.
- Have an employer who doesn’t reimburse you for these costs.
It’s worth noting that if your employer already gives you a home-working allowance, you can’t claim additional work from home tax relief for the same expenses. But if they don’t cover your extra costs, HMRC lets you claim a bit back.
How Much Work from Home Tax Relief Can You Claim
There are two ways to claim tax relief for working from home: the Fixed Rate Method and the Actual Costs Method.
1. Fixed Rate Method (Easy & Hassle-Free!)
This is the simplest way to claim, and you don’t need to provide receipts or proof of expenses. HMRC allows employees to claim:
- £6 per week (or £312 per year).
- This amount is deducted from your taxable income, reducing the tax you pay.
If you want a straightforward way to claim work from home tax relief, this is your best bet!
2. Actual Costs Method (For Bigger Expenses)
If your work-from-home expenses are higher than £6 per week, you might want to claim based on actual costs. This includes:
- A portion of your electricity, gas, and water bills related to home working.
- Additional internet or phone costs used for business purposes.
- Essential office equipment (like a desk, chair, or monitor) if your employer doesn’t provide them.
Important: You’ll need to keep receipts and records as proof, as HMRC may ask for evidence of your actual costs.
How to Claim Your Work from Home Tax Relief
There are three ways to claim work from home tax relief:
- Through Your PAYE Tax Code – The easiest option! If you apply through HMRC, they will adjust your tax code, so you pay less tax automatically.
- Filling Out a P87 Form – You can do this online via your personal tax account or by post.
- Through Self-Assessment – If you already complete a tax return, just include your home-working expenses in the employment expenses section.
Is Working from Home a Taxable Benefit
Nope! Simply working from home isn’t considered a taxable benefit. However, if your employer reimburses your expenses, these payments may be taxable unless they meet HMRC’s guidelines for exempt home-working costs.
Tips to Maximise Your Work from Home Tax Relief
Want to make sure you’re claiming everything you’re entitled to? Here are some helpful tips:
– Keep accurate records – HMRC may ask for proof of additional costs, so hold onto those receipts and bills.
– Double-check with your employer – If they already provide a home-working allowance, you may not need to claim.
– Stay updated – Tax rules can change, so keep an eye on HMRC updates to make sure you’re claiming correctly.
Need Help? Let’s Chat!
Claiming work from home tax relief might seem a bit complicated, but don’t worry—I can help! If you’re a director or employee looking to claim your working from home expenses, reach out today. I’ll make sure you claim the right amount and stay compliant with HMRC. Let’s make tax relief simple and stress-free!
Comments are closed