​HMRC during Covid relaxed the rules on working from home allowances due to the unusual circumstances we faced.

However, they are now tightening up on this area back to the original rules, as follows.

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• 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

  • you work from home because of coronavirus (COVID-19)

  • your employer has an office, but you cannot go there sometimes because it’s full

• 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 can either claim tax relief on:

  • £6 a week from 6 April 2020; you do not need to keep evidence of your extra costs

  • or the exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts

• You’ll get tax relief based on the rate at which you pay tax.

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There also other expenses you incur in respect of your employment that are not re-imbursed by your employer. For more information please use the following link to HMRC https://www.gov.uk/tax-relief-for-employees/working-at-home or contact Mark or Gemma at MHR