Home workers could claim tax relief

The ongoing Covid-19 pandemic has seen many employees swap the office for home working. If you’ve asked your employees to work from home for safety reasons, they may be entitled to claim tax relief on any additional household expenses they’ve incurred. They can claim if they work at home regularly, either for the full week or for part of the week, including if they have to work from home because of Covid-19.

What additional costs are included?

Tax relief can be claimed if additional costs are incurred as a result of the employee being at home rather than in the office. For example, the cost of heating, water bills and broadband which the employee will use when working from home. Relief can also be claimed on costs such as business calls and home contents insurance. Employees may also be able to claim tax relief on equipment they’ve bought as a result of home working. This could include new desk chairs, laptops or mobile phones.

What costs aren’t included?

There are some costs which tax relief cannot be claimed on. These are costs which would typically stay the same whether the employee was working at home or in the office. Therefore, mortgage interest rates, rent and council tax cannot be claimed on.

How much can they claim?

There are two different amounts that can be claimed. Employees can either claim tax relief of £6 a week from April 6th 2020 (they will not need to keep evidence of any extra costs) or they can choose to claim the exact amount of extra costs which they have incurred above the weekly amount. For this, they will need to provide evidence such as receipts, bills or contracts. Tax relief is based on the rate at which the employee pays tax.

How to make a claim

Making a claim couldn’t be easier. Simply tell your employees to visit the GOV.co.uk website and search ‘claim tax relief for your expenses.’ From here, they can fill in the relevant information on the safe and secure form. Employees who are eligible will receive their full entitlement via an adjustment to their tax code.