Claiming tax relief for working from home

As per HMRC guidance, you may be able to claim tax relief for additional household costs if you have to work at home on a regular basis, either for all or part of the week. This includes if you have to work from home because of coronavirus (COVID-19).

You can either claim tax relief on:

• £6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) - you will not need to keep evidence of your extra costs
• The exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts

You’ll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20% of £6).

If you need to make an entry on the tax return, it will depend on whether you are self employed or employed. Please see the applicable locations below for your scenario:

Employment

HMRC Forms Mode:

Employment > Box 20

SimpleStep Mode:

Your work > Employment > Expenses > Complete the box labelled  “Other expenses and capital allowances”

Self Employment

HMRC Forms mode:

Short Form: Page 1 > Box 14

Full Form: Page 2 > Box 21

SimpleStep mode:

Short Form: Your work > Self Employment > Short Form – Details > Allowable expenses > Complete the box labelled “Rent, power, insurance and other property costs”

Full Form: Your work > Self Employment > Full Form – Details > Expenses breakdown 1 > tick the top of the page to report your expenses in details and input the entry in the box labelled “Rent, rates, power and insurance costs”

Please note: if you do not already file a self assessment, you can complete a form online through the HMRC website. Please click on this link and select the button for Check if you can claim.