Do you work from home?
HMRC have changed the flat allowance you’re allowed to claim without receipts. So, if you have just started using your home for work, or you claim every year, here’s what you need to know.
New working from home HMRC rates
The agreed rates for working from home have changed from the 2015-16 tax year.
Without having to provide receipts you can claim;
- £10.00 per month, if you work 25 hours or more.
- £18.00 per month, if you work 51 hours or more.
- £26.00 per month, if you work 101 hours or more.
The rates will come into use from the 6th April 2015 and can be used when completing your tax return if you fill one in or when you make an expenses claim through PAYE.
What does HMRC mean by ‘working from home’?
Yes, they do have their own definitions of things! Basically, they require that your contract specifies the necessity to work from home as part of the job. They also accept written confirmation in the form of a letter from your employer stating that you are required to work from home.
If you have volunteered to work from home then your employer must make a contribution to your expenses in order for you to be able to claim tax relief. The most successful claims have been for clients with a recognisable work pattern. For example – 2 days in the office, 3 days working at home.
Are there any other expenses I can claim for?
Lot’s of people who use their home for work have other expenses because of their jobs. It all depends on your own set of circumstances what else you can claim for. Here’s some examples:
- Other ‘working from home’ expenses.
Generally it is acceptable to claim for the extra expense of lighting and heating your home workspace. This includes gas and electric and any work phone calls.
- Using your own vehicle
If you make any journeys in your own private vehicle to different work locations or to a temporary workplace, then you can make a claim for mileage.
- Membership fees and subscriptions
Some Unions, professional bodies and trade journals have an agreement with HMRC so that you can reclaim the tax paid on their fees.
- Purchasing equipment, protective clothing and work uniforms.
If you have had to buy any of these items for work and have not been reimbursed then you can reclaim the tax you have paid on these items.
- Laundering a work uniform.
If your employer does not provide you with washing facilities then you can claim the cost of cleaning your uniform at home.
Tony Shanks