Working From Home Tax Relief Guide

Employed and have to work from home? You can normally claim tax relief on some of your household expenses.

If you work from home, you could be eligible to make a claim. No matter what job, our working from home tax rebate guide lets you know if you’re eligible and how to claim back your WFH tax rebate.

Can I claim for working from home tax relief?

To be eligible to claim tax relief for working from home your contract must state that it’s a requirement of your job. Alternatively your employer can provide a letter confirming that you work from home as part of your duties.

You can claim back for the past four tax years only and making a claim can update your tax code meaning you will pay less income tax in the future.

Working from home tax rebate and Covid-19

Because of Covid-19 HMRC allowed people to claim for working from home in the 19/20 and 20/21 tax years if you worked for some or all of the time at home.

From the 6th April 2022 HMRC has reverted back to their pre-covid rules of you needing to work from home and not just working from home as a choice.

How much is the working from home tax relief worth?

You can claim agreed rates without having to provide receipts.

Working at home agreed rates:

  • Up to the 5th April 2020 the agreed rate is £4 per week.
  • After the 5th April 2020 the agreed rate is £6 per week.

The figure you will receive back as a tax rebate will depend on the rate of tax you pay.

  • Basic rate tax payers will get £1.20 per week or £62.40 per tax year.
  • Higher rate tax payers will get £2.40 per week or £124.80 per tax year.
  • Additional rate taxpayers will get £2.70 per week or £140.40 per tax year.

You can make a claim for the exact amount of costs incurred. If you need to claim more than the agreed rates you’ll need evidence that shows the extra cost you incurred from working at home.

I volunteer to work at home, can I still claim a tax rebate?

If you’ve made a ‘homeworking arrangement’ with your employer, and work at home on a regular basis you should still be able to make a claim if:

  • There’s a recognisable pattern for example three days at home and two days at your normal place of work.
  • Any work you do at home is part of your employment.

To claim work from home tax relief in this situation your employer must make a contribution towards your expenses.

Working from home tax relief and tax returns

If you complete a self assessment tax return you have to include the working from home allowances in the correct box on your tax return employment page.

How do I claim a tax rebate for working at home?

To process your working from home tax rebate claim it’s best to follow the instructions provided by HMRC (the tax office) on their website. A form P87 will be required which can be submitted to the tax office online or by printing off the form and sending it by post.

There is a different process if you are self employed and claiming will involve your self assessment tax return.

Working from home tax rebate P800

HMRC will send you a form P800 if you have claimed the working from home allowance from a previous tax year.

The P800 explains in figures how much you have been awarded and total tax rebate you are due in each tax year. In addition the P800 guides you to claim any repayment online through your personal tax account.

Working from home tax code

After your working from home claim has been processed you will receive a new tax code from the tax office which will include your working from home allowance.

The point of putting the allowance into your tax code is so you don’t need to make another claim in the future. Your new tax code will increase your tax free allowance meaning you will pay less tax each time you are paid.

If you stop working from home you should tell HMRC so they can take the allowance out of your code so you don’t underpay tax.

What else can I claim tax relief on?

You’re allowed to claim tax relief on the extra expenses you incur to heat and light your work area. Normally these are:

  • The additional cost of utilities (gas and electricity).
  • Work related phone calls.

Work from home tax relief isn’t allowed on household expenses you would be paying for anyway, such as rent or mortgage payments. And it doesn’t cover expenses that relate to both business and private use, like broadband and telephone line rental.

You may be entitled to other tax reliefs (like a tax rebate for tools bought for work), which you can find out more about in our free income tax guides.



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