Claim expenses for additional costs of working from home

Claim expenses for additional costs of working from home

As the 2020/21 tax year draws to a close, many employees will have spent much if not all of the last year working from home.

While the tax system enables employers to pay employees a tax-free allowance of £6 per week (£26 per month) to cover the additional household costs of working from home, employees with less generous employers can also benefit to a degree by claiming tax relief for the extra household costs that they incur as a result of working from home.

How much?

You can make a claim for £6 per week (£26 per month) without the need to provide evidence to prove that you have incurred additional costs of working at home.

However, if the actual additional household costs are higher (and you are able to provide evidence to substantiate this if asked), you can claim the higher actual amount.

Relief is given at your marginal rate of tax. If you are making a claim for a full year of £312 (12 x £26) you will receive tax relief of £62.40 if you are a basic rate taxpayer, £124.80 if you are a higher rate taxpayer and £140.40 if you are an additional rate taxpayer.

How to claim

There are various ways in which a claim can be made.

If you complete a self-assessment tax return, a claim can be made in your tax return.

HMRC have also set up an online claim site, which is available on the Gov.uk website.

Claims can also be made on form P87. This too is available on the Gov.uk website.

See the links below for more information and to make a claim:

Online claim www.tax.service.gov.uk/claim-tax-relief-expenses/only-claiming-working-from-home-tax-relief?_ga=2.38206443.931834769.1613673833-937310271.1612354215;

Form P87 www.gov.uk/guidance/claim-income-tax-relief-for-your-employment-expenses-p87)

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