Working from Home tax relief

Posted by martin humphreys - August 19, 2021 11:02 am Working from home tax relief

The pandemic has had a significant impact on working practices and over the last 18 months many employees have been required to work from home on a regular basis.  You cannot claim relief simply because you choose to work at home but if you have been required to work at home, even if only for one day, it should be possible to claim tax relief for additional household costs.

What WFH tax relief can you expect?

You may be able to claim relief for costs such as light and heat, water and business phone calls based on the proportion of the bill that relates to your work.

You will get tax relief based on your marginal rate of tax and the basis of the claim will be as follows:

  • From 6 April 2020, you can claim £6 per week (£4 per week for earlier years) without the need to keep evidence of your extra costs; or
  • You can keep a record of the extra costs you’ve incurred, including copies of the receipts and invoices, and claim for a justifiable proportion.

Be aware though that you cannot make a claim if your employer has already reimbursed you for these additional costs.

How to make a WFH tax relief claim

If you complete Self Assessment tax returns, the claim can be made through your tax return.  Alternatively, a claim can be made through your Government Gateway.

Do you need more help?

Details of how to make a claim and a tool to assist with checking if you might be eligible to make a claim can be found on the following weblink: https://www.gov.uk/tax-relief-for-employees/working-at-home For further advice on claiming tax relief for working at home, please speak to your usual MFW contact.