Household bills
You can claim tax relief on up to £6 each week – which adds up to a total tax saving of £62 per year for taxpayers on a basic rate – if you’re required by your company to work from home. This is because of the costs that you incur due to not being in an office.
For example, you can claim tax back for work calls that you’ve made or increased electricity bills. You can only claim for those things that you need to use for work – you won’t be able to claim for anything that’s used for personal reasons too e.g. your rent.
Although tax relief was offered to those who worked from home due to the coronavirus pandemic, you may no longer be eligible for this. If your employer either doesn’t have an office or your job requires you to live too far away from your office to commute in, you are eligible. You cannot claim tax relief if working from home is your own choice.
Office equipment
If you need to buy office equipment for your job, such as a computer or desk, you can usually claim the total cost of these purchases as long as you only use them for work purposes. As an example, if you buy a desk for £100 and pay tax at a rate of 20% you’ll be able to claim tax relief of £20.
If your employer buys office equipment for you or you decide to buy an alternative to what they have offered you, you won’t be able to claim tax back on this.
Work from home and need professional advice when it comes to claiming tax relief? Contact our knowledgeable team today!