Working from Home Allowance
29 Oct 2021
Those that had to work from home on a regular basis, either for all or part of a week, may be able to claim tax relief for additional household costs. This includes if it was necessary due to coronavirus (COVID-19). You cannot, however, make this claim if you chose to work from home.
The tax relief includes:
- Gas and electricity
- Metered water
- Business phone calls, including dial-up internet access (you cannot claim for the whole bill, just the part that relates to your work)
How Much you Can Claim
You can either claim tax relief on:
- £6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) – these extra costs will have to be recorded as evidence
- The exact amount of extra costs you've incurred above the weekly amount – you will also need to provide evidence for this. This can be in the form of receipts, bills or contracts
You'll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20% of £6).
To see if you are eligible to claim, you can visit gov.uk HERE.