HMRC updates full list of working from home expenses to claim | Personal Finance | Finance
People who work from home (often abbreviated to WFH) may still be able to claim money back from HMRC despite a Covid-era expenses policy coming to an end. The coronavirus pandemic and the lockdowns imposed to limit the spread meant millions of Britons had to adapt to working remotely.
As the public health crisis receded, companies saw opportunities to reduce their office overheads by maintaining hybrid and fully-remote working, and many workers continue to do so. And while not having to commute to the office can bring considerable savings, being at home all day also comes with its costs due to its impact on things like phone and heating bills. On April 6, the Government called time on a standalone work from home tax relief, allowing people who WFH to claim a £6-a-week deduction directly from the UK tax authority.
It means you cannot claim for the current tax year, and for the foreseeable future, though you may still be able to make a backdated claim for the previous four tax years (from April 6, 2022 to April 5, 2026), Manchester Evening News reports.
You can only make one if your employer hadn’t paid your expenses already and you have extra household costs due to working from home.
According to HMRC guidance, you can claim the relief if you have to work from home, for example because:
- your job requires you to live far away from your workplace
- your employer doesn’t have an office
However, it’s not open to people who choose to work from home. This includes if your contract lets you work from home some or all of the time or if the company you work for has an office but you be there in person because it’s full.
According to HMRC, you can only claim for things to do with your work. This includes things like
- business phone calls
- gas and electricity for your work area
Claims cannot be made for things that you use both for private and business use, like broadband access or rent.
Claims can now only be made for the four previous tax years, provided you meet the criteria.
Eligibly homeworkers can claim a flat rate of £6 a week, or the exact amount you have spent on expenses if you provide receipts.
Tax relief is granted based on the rate at which you pay tax. As an example, those paying the 20% basic rate of tax and claiming tax relief on £6 a week, would get £1.20 per week in tax relief.
You also need to show evidence showing why you need to work promotely, like a letter from your employer or an employment contract.
You can find out more on the GOV.UK website.
