FAQ's 

Read some of our most frequently asked questions below: 

 

The short answer to this in the main, is yes. 

 

Firstly, leaving aside any temporary relaxations of HMRC rules and guidelines during COVID-19 let’s look at if you qualify for any such reliefs. 

 

If you are in a normal PAYE job: 

 

You would only be able to claim tax relief if you live far away from your employer’s premises or your employer does not have an office. If this is the case, you would be entitled for tax relief because you are incurring some additional household costs by having to work at home. 

 

HMRC have a fixed yearly amount of £312 per tax year which equates a tax credit of £62.40 (20% of £312) 

You will not need to keep or provide any detailed receipts or records to claim this amount. 

 

Alternatively, to the above HMRC allowance you can make a claim for the exact additional costs incurred above the aforementioned yearly £312 amount. 

 

You will need to keep and possibly provide detailed receipts and records to show the additional costs. You must only include things that are 100% for your work use, so any private element of a cost is not allowed. Broadband costs are an example of a cost that could not be claimed because it’s likely to be used privately. 

 

Through this link. 

 

Alternatively if you need further assistance with making a claim please contact us on 01908 686860 or our contact page. 

 

If you are Self Employed, 

 

HMRC have a system called Simplified Expenses that includes home use costs. It’s based on the number of hours worked at home. 

 

This is the HMRC detailed information relating to Simplified Expenses 

 

There are set monthly flat rates. 

25 – 50 Hours per month = £10 per month allowable as an expense in your accounts. 

51 – 100 Hours per month = £18 per month allowable as an expense in your accounts. 

101 + Hours per month = £26 per month allowable as an expense in your accounts. 

 

You will not need to keep or provide any detailed receipts or records to claim these amounts. 

 

Alternatively, to the above HMRC allowances you can make a claim for the exact additional costs incurred. 

 

You will need to keep and possibly provide detailed receipts and records to show the additional costs. You must only include things that are 100% for your work use, so any private element of a cost is not allowed. Broadband costs are an example of a cost that could not be claimed because it’s likely to be used privately. 

 

If you are self-employed your claim as such is the relevant amounts entered in the expenses section of your tax return. Such expenses will reduce any taxable profits. 

 

If you need further assistance with claiming expenses, please contact us on 01908 686860 or our contact page.