Tax Relief For Working From Home

For some of us, working from home is the dream. No long commutes or traffic to worry about. But what if there are more advantages, other than the valuable extra lay in? Well,
in short, there are.

HMRC allows simplified expenses to be claimed for working from home without receipts (larger amounts can be claimed with detailed supporting evidence). This varies depending on whether you are employed or self-employed, as follows.

Employees: Tax relief for working from home.

If you are an employee and you work from home, it is possible to claim £4 per week (£208 per year) as an expense, against your salary, to reflect the costs of working from home. This can be done on your self-assessment tax
return, or by getting it included in your PAYE code as an expense.

Even better is that this can be done without any receipts. The tax saving is worth;
• £41 for basic rate taxpayers
• £83 for higher rate taxpayers
• £93 for additional rate taxpayers

Self-employed: Tax relief for working from home?

If you are self-employed, you must work a minimum of 25 hours per month before you can make a claim for simplified expenses for working from home. The claims are as follows.

Based on the number of hours you work from home and the rate of tax and national insurance that you pay, the claim is worth anywhere between £34 and £146 in tax. If you think you are entitled to make a claim but have not done so please get in touch as you could go back to claim relief for the three previous tax years to quadruple the tax savings!

If we can help with making the calculations as to what relief you may or may not be eligible for please do not hesitate to contact our expert tax consulting team who would be happy to help you claim the tax relief which you are eligible for if you work from home.



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