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Working from Home Tax Benefits

Learn about the three expenses that you can claim against your employment income and reduce your tax liability.

Many have been asked to work from home due to the government's pandemic response guidelines. It's likely that you will be eligible for tax relief against routine items and services that you've used to work from home effectively. Contact us for assistance in making your claim.

You might be able to claim tax relief if:

  • You use your own money for things that you must buy for your job
  • You only use these things for your work

You cannot claim tax relief if your employer either gives you:

  • All the money back
  • An alternative, for example your employer gives you a laptop but you want a different type or model

Uniforms, Work Clothing and Tools

You may be able to claim the cost of replacing small tools you need to do your job. Scissors, batteries, staples etc.

Cleaning or repairing specialist clothing is also allowed, but this may be less common when working from home.

Bills

Most bills won't be allowable, but there are some bills which should qualify. Business telephone calls or the extra cost of gas and electricity for your work area are the most common examples. The bills won't come with a "breakdown" so a reasonable percentage would be acceptable with HMRC.

You cannot claim for things which you use privately and for business if the business element does not cost anything extra. For example, if your broadband cost £20 a month before you started working from home, you
cannot claim a percentage of this, as the additional usage has not cost you anything. The same would be true of your rent or mortgage interest.

From 6 April 2020 an employer can pay up to £6 a week to cover additional costs and this would not be considered taxable income, however your costs may be higher than this, or your employer may pay nothing.

Office Equipment or software

I've seen many wonderful pictures on social media of people's new home workstations. Many people will have purchased desks, phones, printers and laptops personally and will receive only part or no reimbursement from their employer.

These costs should also be allowable against your employment income and reduce your tax liability.

These expenses are either claimed through a self assessment tax return or on form P87. Please get in touch now if you think you are eligible to claim.

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