Claim Tax Relief for Working from Home

Charlotte Morley
Nov 20, 2020

Throughout 2020 many of us have been working from home; juggling parenting, housework, P.E with Joe Wicks and trying to minimise the trips to the snack cupboard! Well, we have some good news for you! Thanks to this new setup, you may be able to to reclaim tax relief for your additional household costs.

If you have to work at home on a regular basis, either for all or part of the week, including fi you have to work from home because of COVID-19, you may be able to claim some tax relief through HMRC. Additional costs include things like heating, metered water bills, home contents insurance, business calls or a new broadband connection. They do not include costs that would stay the same whether you were working at home or in an office, such as mortgage interest, rent or council tax.

How much can I claim?

You can either claim tax relief on:

  • £6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) - you will not need to keep evidence of your extra costs
  • the exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts

You’ll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20% of £6).

Am I eligible?

Follow this link to check if you can claim. If you're eligible, to claim these expenses, you need a Government Gateway user ID and password. You can create a user ID if you do not already have one. Creating a Government Gateway ID usually takes about 10 minutes. It works best if you have your National Insurance number & a recent payslip or P60 or a valid UK passport.

What about equipment expenses?

You may also be able to claim tax relief on equipment you’ve bought, such as a laptop, chair or mobile phone. In most cases you can claim tax relief on the full cost of substantial equipment, for example a computer, you have to buy to do your work. This is because it qualifies for a type of capital allowance called annual investment allowance. To find out if you can claim, follow this link.

If you have any questions or we can help you with any COVID-19 business support please get in touch. Email the team hello@thebusinesshut.co.uk or call 01858 289 189. You can also refer to our COVID-19 support page.

Thanks for stopping by,

Charlotte & The Business Hut Team

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