In 2003 the government introduced working from home tax relief which allowed anyone working from home to claim back some tax to help cover household costs. The tax relief you were able to claim was £4 a week.
During the pandemic millions were forced to work from home and during this time the government increased the amount to £6 per week. You didn’t need to prove that you worked from home regularly during this period.
Now the COVID restrictions have been removed HMRC have updated its guidance for the 2022-2023 tax year and introduced criteria that makes it more difficult to get a tax break.
The eligibility rules have changed and they now state that you cannot claim tax relief if you choose to work from home, this includes a contract that allows you to work from home some or all of the time.
To apply for the working from home allowance HMRC have a specific portal to enable you to do so: Claim tax relief for your job expenses.
If the amount you are claiming doesn’t come close to the extra costs (especially with the rise in living costs), you can apply for relief for a higher sum.
HMRC states that you can include a proportion of the additional costs such as:
- Heating
- Metered water bills
- Home contents insurance
- Business calls
- New broadband connection
If you claim a higher amount you must include this on your self assessment (if you complete one) or you must fill in the P87. All receipts must be kept as evidence and you can claim up to a maximum of £2,500.00 per year.