If you are required to work from home as part of your job, you may be able to claim working from home tax relief for business expenses on your phone, gas, and electricity bills.
Flexible working arrangements have become a staple part of many of our lives. It comes with many perks – including saving you money and added convenience. In addition, there are also home office tax benefits, which you may be eligible for depending on your situation.
Can I claim tax relief for working from home?
You can only claim working from home tax relief if you need to work from home due to your job requirements or if your company does not have an office. You can claim work-from-home tax relief whether you work part-time or full-time from home.
If most of your duties are expected to be performed from home, you may also be able to claim tax on travelling costs to the office.
If your job provides optional hybrid working, or if you work from home due to a lack of desks in the office space, you are not eligible for tax relief.
To claim, you need to provide evidence that you must work from home, along with your bills or receipts. Then you’ll be able to claim for the current tax year and the four previous years. You can only claim expenses exclusively used for business purposes, such as gas and electric bills, or phone bills for business calls.
You have the option to claim on the exact amount you spend weekly, or on a flat rate of £6, which is divided by the rate at which you pay tax. For example, if you pay 20% tax, you can claim £1.20 each week.
To learn more about how J Sweeney Accountants can help you save money, email [email protected] and call 01604 950034.