If you are now working from home due to the Coronavirus pandemic, you may be eligible for tax relief on some of your additional costs related to homeworking. This tax relief is only for employed people, and you must work full-time or part-time from home due to the pandemic.

You cannot apply for this tax relief if you choose to work from home.

If you are self-employed and work from home, you can claim expenses through the self-assessment route. Click on this link to find out more – Simplified expenses if you are self-employed.

Tax relief available for homeworking

If your employer has asked you to work from home during the pandemic, then you may be able to claim tax relief for additional household costs such as:

• Gas and electricity
• Metered water
• Business phone calls, including dial-up internet access

It isn't easy to calculate the actual costs of utilities between home and work, so the HMRC has agreed on a flat rate of £6 per week. Some employers are paying their staff the extra £6 per week tax-free, however as many employers are struggling themselves, they may not offer you this additional allowance.

If you are not about to get support from your employer, you can claim tax relief on £6 per week, and the amount will be deducted from your taxable income. You don't need to keep receipts as evidence of these extra costs. Below we show you what the tax relief of £6 a week equates to depending on the current rate at which you pay tax.

• £1.20 a week for a basic 20% rate taxpayer (£62.40 a year)
• £2.40 a week for a higher 40% rate taxpayer (£124.80 a year)
• £2.70 a week for a top 45% rate taxpayer (£140.40 a year)

If you have incurred more costs, you need to keep receipts or contracts to access extra tax relief.

If you had to buy equipment such as a laptop, chair or mobile phone to allow you to work from home, you could claim tax relief by clicking on this link – Claim Tax Relief for your job expenses. 

How can I claim tax relief on expenses?

It's probably a good idea to check with your employer first and find out if they can pay you extra expenses for homeworking. If they are not, then you can check if you are eligible by clicking on this link – Claiming Tax Relief for working from home.

If you are eligible to claim these expenses, you need a Government Gateway user ID and password. You can create a user ID if you do not already have one. You will need your National Insurance number, a recent payslip or P60 or a valid UK passport.

If you are an employer and you want to find out more about tax relief available to your staff, then please do contact us.  

You can call 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..