As the Government is encouraging everyone to work from home when they can, don’t forget you can claim tax relief for your home office

Working from home can be a challenge. Constant interruptions from children, partners, pets or all three. Your house is full of temptations from the pile of washing up to the box set you nearly finished on Netflix. However, we are all learning to adapt to a new way of working, in your own home.

Whilst working from home you may have had to make changes to your home and there will certainly be additional costs for the increase in utility bills. Because of this HMRC will allow you to claim a fixed rate allowance for the use of your home to avoid having to work out the proportion of personal and business use, e.g. how much of your utility bills are for business.

You can only use simplified expenses if you work for 25 hours or more a month from home.

25 to 50 business hours per month – £10 flat rate
51 to 100 business hours per month – £18 flat rate
101 or more business house per month – £26 flat rate

The flat rate doesn’t include telephone or internet expenses. You can claim the business proportion of these bills by working out the actual costs.

This is just one of many flat rate job related expenses available to claim. Details of other expenses can be found on the HMRC website here, along with details on how to claim this for yourself.

If you are currently a client we will discuss the claim with you when we prepare your 2020 tax return. If you are an employee and want our help to make a claim please contact us or follow the details above.

This article is published for information only. It provides only an overview and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the above can be accepted by the author or the firm.