Working From Home Tax Relief
A heads up for people working from home for an employer on a regular basis – you may be eligible to claim tax relief for work expenses not reimbursed, via the HMRC online portal.
During the past year many of us have, on the request of our employers, been working remotely. Maybe you are employed, or a mixture of employed and self-employed, and have seen expenses spiking with remote working arrangements in the past year, expenses not reimbursed by your employer. If so, this blog is for you. Or if you are an employer, you are able to pay staff up to £6 a week tax free (‘flat rate’), to cover additional costs.
What’s the working from home tax relief for?
The tax relief on offer applies to things purchased with your own money – items or services required for your job function, used for work purposes only. This could be IT equipment or necessary phone calls you made for example. You will need receipts or proof of payment for all of these items. The checklist includes:
- heating, lighting, telephone calls – records must have been kept
- uniforms, work clothing and tools – including repair and washing of
- vehicles you use for work – including mileage and fuel
- travel and overnight expenses
- other equipment such as a computer – you had to buy to do your job
The tax relief means a reimbursement of the tax already paid. An example of what you can claim provided by HMRC:
‘If you spent £60 and pay tax at the rate of 20%, the tax relief you can claim is £12.’
Do I qualify?
- In order to qualify you need to have been employed by a business and have paid tax in the year claiming for. Post-April 2017 and onwards is deemed ok.
- Visit the gov.uk/tax-relief-for-employees claim checker.
- If deemed eligible and you have receipts and records to back your claim, you need a Government Gateway user ID to process the claim in the ‘portal’. To set this up, have your National Insurance number and recent payslip, P60, or valid passport to hand. If self-employed, you will already have this in place.
For help with this or any aspect of your employee or personal finances, please don’t hesitate to contact our team at LHP on firstname.lastname@example.org or by ringing 01267 237534.