Working from Home and Tax

Work from Home

Working from home has suited people for a variety of reasons from saving money on long commutes to being able to fit work in around family life.

Equally, people have missed the busy environment of the office and being able to leave it behind at the end of the day.

But if working from home is for you, what does it mean for your tax bill?

HM Revenue and Customs tax relief claims

HM Revenue and Customs is accepting tax relief claims for working from home due to the Corona Virus pandemic.

If, as an employed worker, you were told to work at home by your employer and your household costs have increased, you are eligible to claim the working from home tax relief.

It is very quick and easy via HMRC’s new online portal.

HMRC will also accept backdated claims for up to four years so if you haven’t claimed for the tax relief, you haven’t missed out.

Employees do not need to provide evidence to show their bills have increased unless they are applying for tax relief on costs above the £6 per week flat rate.

We at Kew Accountants can also advise you on what steps you need to take.

We offer tax advice to make sure you make the most of tax planning opportunities to keep more of your income legally.

More than the £6 per week flat rate

If you need to claim a greater weekly amount tax free, you will need supporting evidence.

This could include lighting costs, metered cost of increased water use, business phone calls or internet access.

Costs that would be the same whether or not the employee works at home are not covered, for example, a broadband connection fee can only be reimbursed tax free if the employee does not already have one and needs one to work from home.

Travelling to and from the office

If you work from home full-time, it is possible to get tax relief on unreimbursed travel expenses to the office.

But the trip must not be undertaken regularly and HMRC must accept the office as a temporary workplace, rather than home as the temporary location.

If you split your time between home and the office, then it will be recorded as two permanent workplaces and you cannot claim tax relief on travelling between the two locations. It is just a normal commute.

For more information about what you could claim for working from home and how to do it, contact us at https://www.kewaccountants.co.uk/

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