If you’ve been working from home, you might be eligible for a tax relief payment from HMRC worth up to £140. Whether you’re a full-time remote worker or just work from home part of the time, this tax relief can help cover the additional costs of heating, electricity, and internet usage. The best part? You can even backdate your claim for up to four years. Here’s everything you need to know about claiming this benefit.
Tax
The HMRC working from home tax relief is designed to help employees cover extra costs they incur while working remotely. The tax relief is a flat-rate allowance of £6 per week, which is applied based on your income tax rate.
Here’s a breakdown of the relief amount based on tax brackets:
| Tax Rate | Relief Amount (Per Year) |
|---|---|
| Basic Rate (20%) | £62.40 |
| Higher Rate (40%) | £124.80 |
| Additional Rate (45%) | £140.40 |
Now, let’s look at who qualifies for this relief and how to apply.
Eligibility
To qualify for HMRC’s working from home tax relief, you must meet specific criteria.
Employer Requirement
- You must have been instructed by your employer to work from home.
- If you voluntarily chose to work from home, you are not eligible.
Additional Costs
- You must have extra household costs due to working from home, such as increased electricity, heating, or internet usage.
- General expenses like rent or council tax are not covered.
No Employer Reimbursement
- If your employer reimburses your extra costs, you cannot claim this tax relief.
UK Taxpayer
- You must be paying income tax in the UK to qualify.
Claim
Applying for HMRC’s working from home tax relief is simple and can be done online.
Step 1
Before you apply, ensure that:
- Your employer instructed you to work from home.
- You have incurred additional costs.
- You have not been reimbursed by your employer.
Step 2
Follow these steps to claim your relief:
- Visit the HMRC Working from Home Tax Relief website.
- Log in with your Government Gateway ID (or create one if you don’t have it).
- Answer a few eligibility questions.
- HMRC will calculate your tax relief amount.
- Submit your claim, and HMRC will adjust your tax code.
Step 3
If you file a Self-Assessment tax return, you can claim this relief by adding the details in the employment expenses section. HMRC will adjust your tax liability accordingly.
Step 4
Once your claim is processed, HMRC will update your tax code, which will reduce the tax deducted from your salary. If there are any errors, you should contact HMRC.
Backdating
One of the biggest benefits of this relief is that you can backdate your claim for up to four years. If you worked from home but didn’t claim the relief, you can still apply for past tax years and receive a lump sum refund.
Avoid Mistakes
Many people miss out on this relief due to common mistakes. Here are a few to avoid:
- Not checking eligibility: If you chose to work from home, you can’t claim.
- Claiming for non-qualifying expenses: Only claim for costs directly related to working from home.
- Missing deadlines: You can claim up to four years back, but don’t delay.
The HMRC working from home tax relief is a simple way to reduce your tax bill if you’ve been working remotely. With a quick online application, you can receive up to £140 back—or even more if you backdate your claim. If you meet the criteria, don’t miss out—apply today and get the tax relief you’re entitled to.
FAQs
Who can claim HMRC working from home tax relief?
Employees instructed to work from home and facing extra costs.
How much tax relief can I get?
Up to £140 per year, depending on your tax rate.
Can I backdate my claim?
Yes, you can claim for up to four previous tax years.
How do I apply for the relief?
Apply online through HMRC’s website or via Self-Assessment tax return.
What expenses does the tax relief cover?
Extra costs for heating, electricity, and internet used for work.
