Companies seeking to reimburse employees for some of the costs associated with working from home can offer a work from home allowance. This could prove an attractive benefit but not all companies choose to offer it. If your company is among them, you may be eligible to claim tax relief instead.
How much tax relief can you claim for working from home?
Tax relief for working from home can be claimed either on £6 per week or on specific expenses. If you’re claiming for the latter then you will require evidence. You’ll receive tax relief at the same rate as your income tax and you’ll normally receive it through a change to your tax code.
- If you pay 20% tax then you will receive tax relief of £1.20 per week (20% of £6) or £62.40 per year.
- If you pay 40% tax then you will receive tax relief of £2.40 per week (40% of £6) or £124.80 per year.
What can you claim for?
If you’re claiming for specific expenses then they must relate only to your work, you cannot claim for anything that you use for both your work and personal life, such as broadband.
Who is eligible for tax relief?
Here’s the rub, you can only claim tax relief if you must work from home at least part of the week. Gov.uk suggests this would include those who are required to live far away from their office, or if an employer doesn’t have an office. You can’t claim it if you choose to work from home.
The Hattie 