If you are one of the 10 million people working from home, did you know you can benefit from a weekly tax-free allowance of £6? This totals to £26 a month and is based on whether your employer opts in.
It is also possible for employers to reimburse higher amounts, providing that you can prove your variable costs have increased since working from home. The total increase must be higher than £6 and can include amenities such as heating.
How To Claim Your Weekly Homeworking Allowance
For those that do not receive an allowance but are required to work from home, you can claim a £6 weekly tax deduction from HMRC. In order to do this, you must have a homeworking agreement in place, whereby your employer sets out your conditions for working from home.
With electricity and gas bills continuing to rise, it is more than likely that the cost of heating the room you work in will exceed £6 a week. In this case, you can also claim an HMRC deduction for the actual additional costs; you will just need to provide proof, so don’t forget to keep copies of your bills for evidence.
You will be able to claim this homeworking deduction on your self-assessment tax return or via the online form P87. If a similar claim was made the previous year, you could renew this by contacting HMRC.
We can help you to calculate the additional costs of working at home, so please do not hesitate to contact us to book an appointment.