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Working from home for at least part of the working week is more common than ever. But is there any tax relief for employees who work from home and incur costs in doing so, but don’t receive any reimbursement for these from their employer?
The relevant legislation states that the employee can only claim relief for expenses that are wholly, exclusively and necessarily incurred in the performance of their duties. In order to claim relief, the employee must first show that their home is a workplace. HMRC will accept that a home is a workplace where:
An employee who can show that their home is a workplace can claim relief for the following working from home expenses:
It is often not practical to calculate extra costs, so a claim for £18 per month for monthly paid employees (£4 per week otherwise) can be made without having to justify the figure. This does not cover the cost of business phone calls, for which an additional claim can be made based on the actual costs.
An employee cannot claim relief for the following working from home expenses, in general, as because the employee will not pay more as a result of working at home:
An employee can make a claim online for working from home expenses , by phone, by post or, if they are registered for self-assessment, through the tax return. HMRC has online help to guide employees to the most appropriate method for their circumstances.