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  • Writer's pictureAngelika Ostrowska

Working from home?

Many of us, especially nowadays work from home. If you work from home also due to the current lockdown in England,

you may be able to claim tax relief and save some money.

Different rules apply to employed and self-employed when claim the "use of home" expenses.

If you are an employee you have two options:

1. Claim fixed amount of £6/week for tax year 2020/2021 (you do not need evidence of extra costs). So, over the year, that's £62.40 for basic-rate taxpayers, £124.80 for higher-rate taxpayers, and £140.40 for additional-rate taxpayers.

2. The exact amount of extra costs you have incurred above the weekly amount - you will need evidence such as receipts, bills or contracts

If your employer has not paid your expenses for working from home than you can do it directly through HMRC website . HMRC will adjust your tax code to reflect a relief.

If you are self-employed you can claim your "use of home" expenses through your self assessment tax return:

1. You can use a fixed rate if you work 25 hours per month and more. Rates depend on number of hours you work from home each month.

  • 25 to 50 hours - £10

  • 51 to 100 hours - £18

  • 101 and more - £26

2. You may be able to claim a proportion of your costs for things like:

  • heating

  • electricity

  • Council Tax

  • mortgage interest or rent

  • internet and telephone use

You’ll need to find a reasonable method of dividing your costs, for example by the number of rooms you use for business or the amount of time you spend working from home.

Please feel free to contact us if you have any accountancy related questions or 07895 408 693.

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