The UK working from home tax code offers an opportunity for eligible individuals to save on their taxes by claiming tax relief for additional household costs incurred while working from home.
This tax relief is designed to help offset expenses such as gas, electricity, and business phone calls that are directly related to your work.
Whether you choose to claim a set weekly amount or the exact amount of costs above the weekly limit, the tax relief you receive is based on your tax rate. Basic-rate taxpayers can receive £1.20 per week, higher-rate taxpayers can receive £2.40 per week, and top-rate taxpayers can receive £2.70 per week.
To claim tax relief, you can use the government’s online service and provide evidence such as receipts, bills, or contracts.
Make the most of the UK working from home tax code to save on taxes and maximize your income!
Working from Home Tax Code
Who is Eligible for Work from Home Tax Relief?
To be eligible for work from home tax relief, you must meet certain criteria set by the HMRC. You can claim tax relief if your job requires you to work from home because you live far away from your office or because your employer does not have an office. However, you cannot claim tax relief if you choose to work from home, your employment contract allows you to work from home, or you work from home due to COVID-19. The tax relief is only applicable to work-related expenses, such as business phone calls and gas and electricity for your work area.
Eligibility Criteria for Work from Home Tax Relief
- Your job requires you to work from home due to commuting distance or lack of employer office.
- You do not choose to work from home voluntarily.
- Your employment contract does not allow you to work from home.
- You are not working from home due to COVID-19.
| Eligibility Criteria | Eligible | Not Eligible |
|---|---|---|
| Job requires working from home | ✔ | ✘ |
| Choice to work from home | ✘ | ✔ |
| Employment contract allows working from home | ✘ | ✔ |
| Working from home due to COVID-19 | ✘ | ✔ |
What Can You Claim When Working from Home?
When working from home, there are various expenses related to your work that you can claim for tax relief. These claimable expenses can help you maximize your income and offset the additional costs incurred. Here are the categories of expenses you can claim:
1. Business Phone Calls
You can claim tax relief for the cost of business phone calls made from your home. This includes both landline and mobile calls specifically related to your work.
2. Gas and Electricity
The gas and electricity used for your work area in your home can be claimed as a tax relief. This applies to the additional costs incurred while working, such as lighting and heating the work area.
3. Small Tools
If your job requires small tools that are necessary for your work, you can claim tax relief for the cost of purchasing or maintaining these tools. Examples include specialized equipment, software licenses, or subscriptions.
4. Cleaning or Repairing Uniforms or Work Clothing
If you have uniforms or work clothing that require cleaning or repair due to your job, you can claim tax relief for the cost of these services. This applies only to clothing that is exclusively used for work purposes.
5. Travel Expenses to Temporary Workplaces
If your work requires you to travel to temporary workplaces, you can claim tax relief for the expenses incurred during these journeys. This includes costs such as travel tickets, accommodation, meals, and parking.
6. Professional Fees and Subscriptions
If you pay professional fees or subscriptions that are directly related to your work, you can claim tax relief for these expenses. Examples include membership fees to professional organizations, trade unions, or subscriptions to industry-specific publications.
7. Equipment Used Solely for Work Purposes
If you purchase equipment that is used solely for work purposes, such as a computer, printer, or specialized tools, you can claim tax relief for the cost of these items. This applies to both the purchase and maintenance expenses.
It’s important to note that you cannot claim tax relief for expenses that are used for both private and business use. This includes expenses like rent, mortgage payments, broadband access, or general household bills.
When making a claim, it’s crucial to keep track of your expenses and retain receipts or invoices as evidence. This documentation will support your claim and ensure that you receive the tax relief you are entitled to.
| Expense Category | Eligible Expenses | Ineligible Expenses |
|---|---|---|
| Business Phone Calls | Cost of business calls | Private phone calls |
| Gas and Electricity | Cost of gas and electricity for work area | Cost of gas and electricity for personal use |
| Small Tools | Purchase and maintenance of work-related tools | Tools used for personal purposes |
| Cleaning or Repairing Uniforms or Work Clothing | Cost of cleaning or repairing work-specific attire | Clothing worn for personal use |
| Travel Expenses to Temporary Workplaces | Cost of travel, accommodation, meals, parking | Commute to regular place of work |
| Professional Fees and Subscriptions | Membership fees, subscriptions related to work | Personal memberships or subscriptions |
| Equipment Used Solely for Work Purposes | Purchase and maintenance of work-specific equipment | Equipment used for personal purposes |
How To Claim Tax Relief for Working From Home?
Claiming tax relief for your working from home expenses is a straightforward process that can save you money on your taxes. The UK government’s online service provided by HMRC (HM Revenue & Customs) makes it easy to check your eligibility and submit a claim. Alternatively, if you complete self-assessment, you can claim tax relief in your tax return.
When using the HMRC online service, you’ll need to create a Government Gateway ID, which will allow you to access the necessary forms and information. Additionally, you may be asked to provide your national insurance number, a recent payslip or P60, or a valid UK passport as part of the claim process. These details help verify your identity and ensure accuracy in processing your claim.
If your claim is approved, you’ll receive tax relief through a change to your tax code. This adjustment ensures that you pay less tax on your salary, ultimately reducing your tax liability. It’s an effective way to save money and make the most of the tax relief available for working from home.
Claim Tax Relief for Working From Home – Online Service Steps
- Visit the HMRC website and access the online service for tax relief.
- Ensure you meet the eligibility criteria before proceeding.
- Create a Government Gateway ID if you don’t already have one.
- Provide the required personal information, including your national insurance number.
- Complete the necessary forms and provide any supporting documents, such as payslips or passports.
- Submit your claim and wait for approval.
- If approved, your tax code will be adjusted to reflect the tax relief.
By following these steps and utilizing the HMRC online service, you can easily claim tax relief for your working from home expenses. It’s a simple way to maximize your savings and ensure you receive the financial benefits you’re entitled to.
| Tax Relief Claim Process | Benefit |
|---|---|
| Create a Government Gateway ID | Smooth and secure online access to tax relief services |
| Provide necessary personal information | Verification and accurate processing of your claim |
| Complete forms and submit supporting documents | Thorough evaluation and assessment of your claim |
| Claim approval and tax code adjustment | Reduction of tax liability, saving money on taxes |
How Much Tax Relief Can I Get for Working From Home?
The amount of tax relief you can receive for working from home depends on your tax rate and the method you choose to claim.
If you claim the set weekly amount, which is currently £6 per week (as of 6 April 2020), you don’t need to provide evidence of your extra costs.
Basic-rate taxpayers, who pay 20% tax, would receive £1.20 per week in tax relief.
Higher-rate taxpayers, who pay 40% tax, would receive £2.40 per week.
Top-rate taxpayers, who pay 45% tax, would receive £2.70 per week.
However, if you choose to claim the exact amount of extra costs incurred above the weekly limit, you will need to provide evidence such as receipts, bills, or contracts.
What is the Deadline to Apply for WFH Tax Relief?
The deadline for applying for working from home tax relief varies depending on the tax year. For the 2020/2021 tax year, the deadline is 5 April 2025, and for the 2021/2022 tax year, the deadline is 5 April 2026. However, it’s important to note that the HMRC will accept backdated claims for up to four years. This means you can still claim tax relief for the previous tax years if you haven’t done so yet.
The HMRC has an online portal where you can check your eligibility and make a claim. The online portal also allows you to backdate your claim for the first tax year of the pandemic (2020/2021) and the two weeks before, as well as the second year (2021/2022) if you have been working from home since the first lockdown.
Applying for tax relief is a straightforward process that can save you money on your taxes. Don’t miss out on the opportunity to claim what you’re entitled to. Visit the HMRC online portal and apply for working from home tax relief today.
Conclusion
The working from home tax code in the UK offers eligible individuals the chance to save on their taxes by claiming tax relief for additional household costs incurred while working from home. By claiming either the set weekly amount or the exact amount of extra costs, you can receive tax relief based on your tax rate. This tax relief can help offset expenses such as gas, electricity, and business phone calls, allowing you to maximize your income.
When making a claim, it’s essential to keep track of your expenses and retain evidence like receipts or invoices. The deadline for applying for tax relief varies depending on the tax year, but the HMRC allows backdated claims for up to four years. Seize the opportunity provided by the working from home tax code to save on taxes and enhance your financial situation.
Take advantage of this scheme to make the most out of your remote working experience. By understanding the working from home tax relief rules and claiming the suitable expenses, you can relieve the financial burden of working from home and enjoy the tax benefits that you’re entitled to. Don’t miss out on the opportunity to save on taxes and increase your overall income.
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