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Claiming Tax Back When Working from Home

Claiming tax back for working from home has been a hot topic of late. We’ll cut through the noise and provide the important details. 

Since the start of the pandemic, more businesses have had their hand forced and allowed remote working. But don’t expect the end of the pandemic to be the end for mass home working.

It appears that some of the biggest tech firms are making home working permanent, such as LinkedIn, Facebook and Apple. Even smaller businesses are suggesting home working is here to stay to some extent. 

If you are currently a home worker or know you will be working from home in the future, you need to hear about the tax rebate you are owed. 

Can I Claim Tax Back for Working from Home?

Anyone who works for an employer in the UK can claim tax back if asked to work from home. This will be the case for many people in 2020 and 2021 who were told to work from home and did not have a choice. In the last quarter of 2020, HMRC announced that they had already received over 54,000 tax relief claims because of home working.

Claiming tax back on home working is a way to cover additional costs relating to bills while working remotely, such as increased electricity or heating usage. 

Can I Claim Tax Back If I Choose Remote Working?

If you chose to work from home when there was an option to work from a business premises, you cannot make a claim. 

How Much Can I Claim for Working from Home?

It is difficult to determine how much working from home will cost you, so it has been simplified. You can claim £6 per week for working from home, and it can be paid to you in one of two ways:

  1. You can ask your employer to pay you £6 per week, which is tax-free
  2. Claim tax relief on this amount from HMRC

The first option is self-explanatory, but many workers are afraid to ask employers for additional money during the pandemic. Therefore, you might prefer to claim tax relief on £6 from HMRC, which equates to £1.20 per week for those who pay 20% tax, and £2.40 per week for those who pay tax at the 40% rate. 

You Can Claim a Full Year No Matter What!

If HMRC was to process each individual claim with different periods of home working, it would cost them a lot of money. The time and resources needed to calculate each claim would be extensive. Thus, for the current 2020/2021 tax year only, you can claim a full year of working from home as long as you have worked from home for at least one day. 

Sounds too good to be true? Those things usually are, but this is 100% legitimate. If you feel guilty for getting more than you deserve, you could still claim for the whole year and make a donation to the NHS or a charity. 

Can I Claim If I Work from Home Part-Time?

Some people might be asked to come into the office, and on other days they might be asked to work from home to maintain social distancing. If you are only working from home part-time, you can still make a claim. And as mentioned above, if it is just for a single day in the current tax year, you can claim for the full year too!

Can Couples Claim Tax Back When Working from the Same Property?

Some couples may be both working from home for the same or different employers. In this case, both individuals can make a claim despite sharing the costs of remote working. 

I Want to Claim More for Working from Home…

If you make a standard claim, you will not have to supply HMRC with any proof. However, you are allowed to make a bigger claim if you believe working from home has cost you more. And you might be able to claim for other expenses to work from home as well, such as a computer. 

In these situations, you will need to provide evidence that you are due more back. It can be tricky and won’t be easy to make a successful claim.

If you decide to go down this route, it might be best to speak with a qualified UK accountant or expert in the niche of claiming tax back.

Many people prefer to get help from experts in any case, to make getting their money back effortless. Contact our team to learn more!