Working from home tax relief: Firms make remote working permanent, but can you claim it?

Martin Lewis outlines details of working from home tax relief

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Working from home became mandatory during the coronavirus pandemic. Recent statistics from the Office for National Statistics found 29 percent of working adults will continue to undertake their jobs from home more often in the future. Almost half of working adults (45 percent) undertook their jobs from home over the past year.

Several big companies have announced plans to make the shift away from the office working permanent.

British Airways and newspaper company Reach PLC today announced plans to switch to mainly working from home.

The airline company said it was considering selling its headquarters near Heathrow as it may not require as much office space.

Reach PLC also intended to make working from home permanent.

Working from home comes with many benefits, with many claiming it is easier to fit work into their life flexibly.

In addition, workers can save huge amounts on transportation, food and other costs.

However, you can also incur additional costs as a result of working from home.

These additional costs include lighting and heating costs, as well as telephone and broadband costs.

The Government recently made it easier for home workers to claim tax relief.

This tax relief was worth up to £125 and could help cover the extra costs of items such as stationery and household bills.

Some employers will provide money to cover these additional costs.

For those not offered this stipend, however, the Government offers a small reduction in their taxes for the time they work from home.

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Can you claim tax relief for working from home?

The Government requires the following for a person to be eligible to claim tax relief:

  • You must only claim expenses for working from home
  • You cannot pay tax by self-assessment
  • You must not have had your expenses paid by your employer
  • You must not have started working from home due to the coronavirus pandemic
  • You must have encountered higher costs since working from home.
  • You can check if you can claim this tax relief here.

How to claim working from home tax relief

To claim this tax relief you need a Government Gateway User ID and password.

If you have never registered for this service online, you can create it using a Government Gateway User D through the HMRC Services website.

To do this you will need your National Insurance number and a recent payslip, P60 or a valid passport.

You cannot currently claim for the 2021/2022 tax year as it does not begin until April 6.

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