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
HMRC InvestigationsAs HMRC start their investigations on business's who have had coronavirus support, you need to know your rights and obligations if your business is picked out for a compliance check. HMRC will be ramping up the checks and investigations for the next...
What's new with pensions?As we are now two months into the new tax year, it's the right time to get up to speed with the changes to auto-enrolment and workplace pensions. The lifetime allowance has been frozen at £1,073,100.00 for the tax years 2021/22 - 2025/26. This...
New tax year, new tax codeAs the 2021/22 tax year has begun, HMRC have been issuing new tax codes where applicable. The personal allowance has increased from £12,500 to £12,570. A a result, it is necessary to update employee tax codes for the new tax year - 1257L....
Practice Update - April 2021With a new tax year has upon us we would like to take this opportunity to update you all with some exciting changes within the Adderley, Hill & Co Team. The team will be back in the office full time as of Monday 19 April 2021. We hope...
Tax Year End - 2020/2021On the 5th April 2021, we will see another tax year pass. So before it does, we wanted to bring some topics to your attention that may be useful. Things to consider doing before the tax year end 5th April 2021; Annual inheritance tax gifts...
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...