What Is The Working From Home Tax Relief And Who Can Claim?
woman browsing on the internet
Photo by Annie Spratt on Unsplash

What Is The Working From Home Tax Relief And Who Can Claim?

Jasmyne Jeffery December 11, 2022

The system has been in place since 2003 but became better known when millions were forced to work from home during the pandemic. Though COVID-19 guidelines have now been removed, many businesses and employees still work from their homes. Therefore, you may be entitled to the working from home tax relief. But how does it work and who can claim it?

Since the pandemic, more people have been working from home. This could be the business’ choice after closing their office, or the freedom of more flexible working appealing to employees. EItherway, if that applies to you then you may be eligible for tax relief due to extra expenses.

What Is The Working From Home Tax Relief?

Tax relief for those working from home was established by the UK government in 2003. Financial help was introduced to help with the increased home costs and used to be worth £4 a week.

This changed in 2020 when a huge amount of people were required to work from home due to the pandemic. The amount was then raised to £6 a week and eligibility eased. It meant that even those who only worked from home one day a week were entitled to over £100 a year.

Now the world is going back to normal, the rules have changed once again. That means it’s not quite so easy to claim tax relief if you have done it before. You can no longer claim working from home tax relief if you choose to work from home.

However, if you live far away from your office or your employer does not have one, then you could still be eligible for tax relief.

How Does It Work?

The government website outlines that you can only claim tax relief if you have used your own money to buy things for your job or if you only use certain things for your job.

Additionally, you cannot claim money back if your employer gives you the money back or if they have offered a free alternative. You also have to have paid tax in the year for you to claim it back, It will look at how much you spent and what percentage of tax you pay.

Photo by Markus Winkler on Unsplash

For instance, if you spend £100 on a laptop and pay a tax rate of 20 per cent, you will get £20 back.

If you want to claim for the current year, then HMRC will change your tax code. Adjustments will then be made going forward. If you are claiming on a previous year then your tax code will change so that you receive a refund. You have to claim within four years of the end of the tax year in which you spent the money.

You can check if you are eligible for the working from home tax relief here.

Things You Can Claim Tax Back On

You may be entitled to tax relief if you used your own money to buy the following:

  • Uniforms, work clothing and tools – including repairing, replacing or cleaning.
  • Using your own vehicle for work – including fuel, MOTs, road tax, repairs and electricity.
  • Professional membership fees/annual subscriptions that are relevant to your job.
  • Overnight expenses – including hotel accommodation, food and drink costs, parking fees and more.

For more detailed information, visit the government website.

Have something to tell us about this article?
Let us know
Jasmyne Jeffery is a full-time Entertainment and News Writer on university-themed website Freshered and HITC, and joined the company having previously worked in a freelance role. She attended the University of South Wales where she was also a student blogger and graduated in 2022 with a first-class honours degree in English and Creative Writing. Now, she puts her creativity to use reviewing university bars, Love Island episodes and the latest apps any 18-25-year-old is using.