This week is the last chance to submit a claim for working from home, as the self-assessment tax return deadline from HMRC is approaching
A tax quirk could mean you’re richer by up to £140 a year if you work from home. As the HMRC self-assessment tax return deadline looms, this week marks the final call for getting in claims related to home working for the 2023-2024 tax year.
You can pocket back £6 a week for your at-home work, which slots into your tax return, helping cover extra costs like electricity, heating, or broadband. For those not completing self-assessment, HMRC still forks out direct claims on the gov.UK site here.
But beware, this is no free-for-all: it’s strictly for those obliged to work remotely due to mandates from the boss or logistical nightmares with commuting. Casually picking a home office setup doesn’t cut it for tax rebates, reports the Express.
The Government clarified: “You may be able to claim tax relief for additional household costs if you have to work at home for all or part of the week.
“You can claim tax relief if you have to work from home, for example, because your job requires you to live far away from your office; your employer does not have an office. You cannot claim tax relief if you choose to work from home. This includes if your employment contract lets you work from home some or all of the time; your employer has an office, but you cannot go there sometimes because it’s full.”
So, if you have a permanent working-from-home contract, you wouldn’t be eligible for the money. The taxman allows you to claim either the exact amount you’ve spent on work-related phone calls, gas, and electricity or a flat rate of £6 per week, which totals £312 over a full year.
Your tax would then be deducted at your income tax rate up to £140. The Government states: “You can only claim for things related to your work, such as business phone calls or gas and electricity for your work area. You cannot claim for items that are used for both personal and business use, like rent or broadband access.”
You will then receive tax relief based on your current income tax rate. For instance, if you pay a 20% tax rate and claim the full £6 per week relief, you’d get £1.20 back in relief each week. For a 40% tax rate, you’d get £2.40 back; if you’re taxed at the 45% rate, you’d receive £2.70 per week in relief.
