With hybrid and remote working still going strong post-pandemic, what expenses can you claim for working from home? Or what can your employees claim for working from home? From bills to furniture expenses, there could be some expenses that you are allowed to claim from HMRC. We’ve got a guide on the working from home tax allowance below. Have a read.
Who can claim working from home allowance?
You may be eligible to claim tax relief if:
- Your employer does not have an office or place of work
- If you live far away from the office and the job requires this
When can’t you claim a working from home allowance?
Not everyone is eligible to claim for a HMRC working from home allowance. You won’t be able to claim if:
- Your employer has an office but you opt not to go
- Your contract allows you to work from home full time or part time
What you can claim for working from home?
Of course, you are only able to claim for stuff that has to do with your work. This could include:
- Business phone calls
- Gas and electricity bills for your designated work area
- You will need to prove this by comparing a household bill from a month you were working from home and one you were in the office.
- You can read more about this here: Section 36(1) CAA 2001
Note: You are able to claim tax for the current year and the previous 4 years.
What can’t I claim for working from home?
You won’t be able to file a claim for things that you use for business and private use. This could include things like rent and broadband.
It’s might best to avoid claiming back for working from home if you’re a property owner due to Capital Gains Tax. Contact our team of experts to find out more about this.
Can you claim gas and electricity working from home?
Yes! You can claim gas and electricity back from HMRC. However, this can only be for the area of the house in which you work. It will not cover the entirety if your gas and electricity bill, just a portion of it.
How much you can claim a tax rebate for working from home?
You can claim either £6 a week or the exact amount you’ve spent.
- £6 a week
- the exact amount you’ve spent
You’ll get tax relief based on the rate at which you pay tax.
How to claim tax refund working from home
In order to claim your tax refund for working, you will need to provide evidence that you’ve worked from home from 2022 to 2023 and/or after. This might include bills or receipts. A P87 form will also need to be completed and sent to HMRC. Or, contact your accountant to file it for you.
Can you claim tax relief for hybrid working?
You might be able to claim tax relief if you’re a hybrid worker. The catch is that it must be in your contract that you are required to work from home as a part of your job. In this case, you are able to claim the £6 flat rate.
We hope this guide on the working from home allowance was helpful. Whether you’re an employer or employee, it’s worth noting what you can claim back as an expense from HMRC.
Next, see our article on National Insurance relief for small businesses.