Working From Home Tax Relief

How does it work?How does working from home tax relief work?

The way you claim tax relief for working from home depends on whether you're an 'on the books' employee or self-employed. Self-employed people generally include their expenses for working from home as part of their normal Self Assessment tax return paperwork. They can still use the stand-alone system on the gov.uk website to claim working from home tax relief for just the 2024-2025 tax year, though.

Employed people who are taxed through the PAYE system, on the other hand, will need to claim their tax relief separately, and can check their eligibility on the gov.uk site . Of course, if you're claiming with RIFT for other work expenses like business mileage as well, your tax relief for working from home will be taken care of as part of your claim.

If you claim tax relief for working from home and you're on the PAYE system, you'll see a change in your tax code. Don't worry about this; it just means that HMRC is boosting your tax-free Personal Allowance so you can earn a little more before you start paying tax. If you're ever not sure you're on the right tax code, talk to RIFT. We can check it for you and get it fixed if there's a problem.

Who's eligible?Who can claim tax relief for working from home?

Obviously enough, you can only claim your tax refund for working from home in any years where you actually qualify for it. During the COVID-19 pandemic, for example, the rules were relaxed to help people who were working from home to protect themselves or others. After the 6th of April 2022, however, the system was changed—meaning fewer employees could make a claim.

If you're employed, the rules for claiming tax relief for working from home say you need to be one of the following:

• Required to work from home by your employer.
• Living too far away from your work to travel there.
• Prevented from working away from home because your employer doesn't have the necessary facilities.

How to claimHow to claim for working from home tax relief

The process for claiming tax relief for working from home is pretty simple. There's a special page on the.gov.uk website to get you started. Once you've checked that you can make a claim, you'll need to log into your account with your Government Gateway ID. If you don't already have one of these, you'll have to set one up before claiming. You can do that easily with a valid passport, payslip or P60 form. Once you're logged in, just follow the prompts on-screen to claim your tax relief.

Again, though, you only need to do this if you're not claiming a tax refund for any other work expenses. If you've got essential costs like travel or tools to claim for, talk to RIFT about getting your refund rolling with the UK's top tax experts.

Understanding HMRC tax relief for remote workers

HMRC provides guidelines so remote workers can claim relief on work-related expenses. Here are the key requirements:

Job Requirement

The key factor is that your job must require you to work from home. If your employer simply offers flexibility to work remotely but does not mandate it, you typically cannot claim tax relief. For example, if your office is open but you choose to keep working from home, the expenses would not be eligible. There may be exceptions if the office lacks sufficient facilities or capacity to accommodate all employees. But in general, the HMRC requirement is that remote work is obligatory, not optional.

Frequency

Additionally, you must work from home all or part of the standard workweek on an ongoing basis. Working remotely for a week due to special circumstances would not reach the threshold for tax relief claims. It must be a regular remote working arrangement for all or part of your normal working hours.

How to claim for working from home tax relief

The process for claiming tax relief for working from home is pretty simple. There's a special page on the gov.uk website to get you started. Once you've checked that you can make a claim, you'll need to log into your account with your Government Gateway ID. If you don't already have one of these, you'll have to set one up before claiming. You can do that easily with a valid passport, payslip or P60 form. Once you're logged in, just follow the prompts on-screen to claim your tax relief.

Again, though, you only need to do this if you're not claiming a tax refund for any other work expenses. If you've got essential costs like travel or tools to claim for, talk to RIFT about getting your refund rolling with the UK's top tax experts.

Tying expenses to work

The key things to consider is that claimed expenses related directly to work tasks and activities. Any costs tied to personal activities don't count. So, it's important to break down bills like heating and internet into work and personal percentages, based on time and specific usage allocation. Expenses purely for personal consumption are not valid for tax relief claims.

You have two main options to claim tax relief for working from home:

• Claim a flat rate of £6 per week without needing to show records or documentation. This is simplest, but could mean less cash back.
• Thoroughly track and submit expenses with accompanying receipts and bills. This maximises your claim based on real costs, but requires strict record keeping.

Top tipsTips to maximise working from home tax relief

As we mentioned previously, if your working from home expenses amount to no more than £6 a week, it’s easy to submit a claim without the need to provide receipts. However, in many cases, those expenses are very likely to exceed that threshold. Follow these tips to maximise the tax relief you receive:

• Track costs for heating, internet, electricity, etc. Break down the split between work-related and personal percentages.
• Keep receipts/bills for office supplies and equipment.
• Calculate total expenses and submit claims via HMRC’s online portal.
• Consult an accountant or speak to RIFT if you’re unsure about claiming more than the £6 weekly amount.

Top tax relief tip from Ryan Carman, head of operations at RIFT Refunds

HMRC will challenge WFH expenses much more now, so it’s important you’re confident that you qualify. Also,  buying lots of brand-new equipment and furniture would not be something that could be claimed as a PAYE employee, even if you have the receipts.

Working from home is financially rewarding once you understand the tax relief opportunities. With RIFT's expertise guiding your claims, you can maximise savings and receive cash back owed from past years too.

Our team makes tax relief easy and stress-free. We handle everything for you and provide personalised advice tailored to your situation. Ready to get the home office tax refunds you deserve while avoiding hassle? Get in touch with RIFT and start your claim for free!