Work from home

Work from Home Tax Relief: What expenses can you deduct?

The COVID-19 pandemic has led to many people in the United Kingdom having to work from home, either on a short-term basis or permanently, and that could lead to you having some tax relief.

There is a tax rebate on offer worth up to �125 per tax year for anyone who has worked from home during the pandemic, as the funds have been made available to help with added costs due to higher heating, electricity and internet bills.

Even if you had to work at home for just one day, you are able to make a claim. However, in terms of eligibility, not everyone qualifies.

Can I get the Work from Home Tax Relief?

In order to qualify for the work from home tax relief, you need to have:

  • Been told to work from home by your employer
  • Had to pay higher costs related to working from home
  • Not been receiving expenses directly from your employer to cover the extra costs of working from home
  • Not paid tax by self-assessment as you would need to apply for the tax relief in your tax return rather than through HMRC’s online portal

It is important to bear in mind that if you are self-employed, you will be unable to make a claim as you work for yourself. That said, you will be able to claim expenses when you submit your tax return.

The key thing to remember for those looking to make a claim for work from home tax relief is that you must have been told to work from home by your employer, rather than opting to do so yourself.

How much tax relief can I get?

You have two options available with regard to getting the tax relief, so this can come either from your employer, who will cover your expenses and pay them into your wages on a tax-free basis, or you can make a claim, as you might be able to claim more tax relief instead from HMRC.

What expenses can I deduct?

HMRC have identified five key areas when it comes to the expenses that you might be able to get tax relief from. These are:

  • Heating
  • Metered water bills
  • Home contents insurance
  • Business calls
  • New broadband connection


Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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