Working from home

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. 

How much can you claim? 

 

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. 

How do I make a claim? 

 

Through this link https://www.tax.service.gov.uk/claim-tax-relief-expenses/claim-any-other-expense 

 

Alternatively if you need further assistance with making a claim please contact us on 01908 686860 or Contact Us Here 

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 https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home 

 

How much can you claim? 

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 https://www.miltonkeynesaccountants.co.uk/contact-us/