Claim tax relief for working from home

The pandemic saw millions of people forced to work from home and as a result, found themselves eligible to claim temporary tax relief on expenses they incurred for that period. Figures from HMRC suggest that more than 3 million claims were submitted for the 2020/21 tax year.

The rules have since reverted back to the original criteria which means some people may still be able to make a claim, but only in specific circumstances.

There are various factors which need to be considered when deciding whether or not you are eligible to claim tax relief for working from home:

• whether you are employed or self-employed
• whether you have the option to work from an office
• which tax year you are wanting to claim relief for

You can no longer claim relief simply because you have opted to work from home.

For instance, if you are employed, you may be able to claim relief if your employer does not have an office or workspace, or if your contract of employment confirms you are required to work remotely for all or part of the week.

If you are self-employed and working from home rather than an office, you can add work-related expenses to your tax return or alternatively make a claim using the HMRC website. You can only claim for expenses to do with your work, such as:

• business related phone calls
• gas and electricity for your work area

You cannot claim for items which have a personal use element such as rent or a broadband line.

How much can you claim?

You can either claim tax relief on:

• £6 a week from 6 April 2020
• 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.

If you would like any assistance claiming tax relief for working from home, get in touch with your usual Lambert Chapman contact.