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Have you Claimed Tax Relief for Homeworking?

If you have been required to work from home at any time during the COVID-19 pandemic in the tax year 2020/21 or 2021/22, and your household costs have increased because of this – you could be entitled to tax relief of £6 per week for the entire year.

Why should I register a claim?

With a relief of £6 per week for the entire year, basic rate taxpayers can enjoy a £62.40 tax saving.

Higher rate taxpayers can thus receive up to £124.80 per year.

These amounts are doubled if you’ve been required to work from home for both tax years (during the pandemic)!

Please note: The amount you receive is based upon the rate at which you pay tax.

Am I eligible?

To be eligible to claim tax relief for homeworking you must:

  • Have been required to work from home (not out of choice) for at least one day from 6 April 2020. This includes home-working for either all, or part of the week.

You cannot claim tax relief if you choose to work from home.

Check if you can claim work related expenses – GOV.UK

Which ‘household costs’ must have increased?

In order to claim tax relief for homeworking, you must have incurred increased household costs during this period (as a result of homeworking).

You may be able to claim tax relief for a rise in the following costs:

  • Gas and electricity
  • Metered water
  • Business phone calls (including dial-up internet access)

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

Do I need to provide evidence?

You do not need to provide documentary evidence of your increased costs when claiming the allowance.

However…

If your additional homeworking costs exceed an annual sum of £312, it may be worth documenting your actual additional costs to ensure that you can claim what you are owed.

Acceptable documentary evidence includes receipts, bills or contracts.

Where can I register a claim?

For employees on PAYE: you can register your claim by clicking the link below

Claim tax relief for your job expenses: Working from home – GOV.UK

For those who prepare self-assessment returns; you must claim via your annual tax return(s).

Still Unsure of something?

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