A little-known tax quirk could see you up to £140 a year better off if you have to work from home.
The self-assessment tax return deadline from HMRC means that this week is the last chance to submit a claim for working from home for the 2023-2024 tax year if you normally file a tax return.
And within that, there is a way to claim back £6 a week if you have to work from home, which you claim as part of your tax return.
The allowance helps meet the cost of electricity, heating, or broadband incurred by working from home.
If you don’t submit a self-assessment tax return, you can still claim the money back directly from HMRC via the gov.uk website, here.
But the catch is that you’re only eligible if you have to work from home, such as if your employer makes you work from home or you live too far from the office to be able to commute in.
If you choose to work from home, you won’t be eligible for the tax relief.
The Government explains: “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, you wouldn’t be eligible for the money if you have a permanent working-from-home contract.
The taxman will let you claim either the exact amount you spent on phone calls, gas, and electricity for work or a flat £6 a week rate, which would equal £312 across a full year. Your tax would then be taken off at your income tax rate up to £140.
The Government adds: “You can only claim for things to do with your work, such as business phone calls, gas and electricity for your work area. You cannot claim for things that you use for both private and business use, such as rent or broadband access.
You will then get tax relief based on your current income tax rate.
If you, for example, pay a 20% tax rate and claim the full £6 a week relief, you would get £1.20 per week back in relief.
For 40%, you’d get £2.40 back; if you pay tax at the 45% rate, you’d get £2.70 per week relief.
