Claim Tax Relief For Working From Home
If you have to work from home on a regular basis for either all or part of the week, you may be able to claim tax relief for additional household costs.
This includes if you have to work from home because of COVID-19, but isn’t applicable if you choose to work from home when you don’t have to.
How much you can claim
If you are eligible to claim, you can claim a flat rate of £6 a week from 6 April 2020. Prior to 6 April 2020, the weekly rate you can claim is £4. If you wish to do it this way, you will not need to keep evidence of your extra household costs.
Alternatively, you can claim the exact amount of extra household costs you’ve incurred, however you will need to provide evidence such as receipts, bills or contracts.
Additional costs include things like:
Metered water bills
Home contents insurance
Business calls or broadband connection
It does not include things that would stay the same cost whether you were working from home or your place of work, such as:
You may also be able to claim tax relief on any equipment you’ve had to purchase in order to work from home efficiently.
It is important to remember that you will get tax relief based on the rate at which you pay tax. So if you pay 20% basic rate of tax and claim the £6 a week, you would get £1.20 per week in tax relief (20% of £6).
For further information and to see if you are eligible to claim, please visit the HMRC website.
Adderley Hill & Co Team
2021 Budget Update As many of you may be aware, the 2021 Budget was announced yesterday. 3 March 2021 and we wanted to highlight some of the key points that were mentioned. Extended Furlough Scheme / Self-employment scheme The Furlough Scheme has been extended to the...
Recent Articles Local Restrictions Support Grant (For Closed Businesses) The government have announced that businesses that have been required to close due to local restrictions may be eligible for the new Local Restrictions Support Grant (LRSG). This means that...
Practice Update - October 2020 TEAM CHANGES We are very sad to announce that Jared, our Trainee Accountant, will be leaving Adderley, Hill & Co at the end of the October 2020. He has been a valued part of the team and with us for over 3 years, joining us fresh...
14 Day Quarantine - Employers Responsibilities If an employee wants to travel to a country that isn't on the governments travel corridor list for a holiday, they will need to self isolate for 14 days on their return. Travel corridors are countries that you can travel...
Recent Articles Apply for up to £10,000 through the 'Green Homes Grant Scheme' to make your home more energy efficient As of the 30 September 2020, householders are able to apply for the Green Homes Grant Scheme to help make their homes more energy efficient, as part...
Job Support Scheme After the recent news of the new Job Support Scheme, we wanted to provide our clients with as much knowledge on the scheme as we can at this moment in time. The Job Support Scheme will replace the Furlough Scheme when it ends on 31 October 2020,...
Can furloughed employees be made redundant? Due to the Coronavirus pandemic, you might have furloughed members of your staff or you could be planning to do this. But where an employee has been furloughed, is it possible to make them redundant during or after their...
COVID-19 mini-budget 2020: an overview Last week, the Chancellor delivered a mini-budget that laid down the Government’s plan to boost the recovery of the UK economy due to the Coronavirus pandemic. Some of the initiatives revealed during the speech include discounted...
Borrowing to lend to your company - what’s the tax position?If you borrow money to inject into your company, you can claim tax relief for the interest you pay. But not all borrowing or interest qualifies and there are pitfalls that can cause you to lose the tax...
Managing cash flow during the coronavirus crisisWith the coronavirus pandemic likely to negatively affect nearly all businesses in some way, your focus will no doubt be on how to ensure the business continues to have enough cash to survive. What should you be looking...