HMRC work from home tax relief

If you have come here looking for information about the HMRC work from home tax rebate programme, you have come to the right place. Although it is important to note that a tax rebate and tax relief are not the same thing. 

The HMRC currently does not have a work from home tax rebate, it does, however, have a work from home tax relief programme.

Tax relief is a deduction from taxable income that reduces the amount of tax paid, whereas tax rebate is a refund to someone who has overpaid tax or is eligible for a tax credit.

With that out of the way, let’s dive into it, explain the programme, and see if you’re eligible. 

What is the working from home tax relief?

The work from home tax relief programme can be a valuable resource for you if you work from home. With the work from home tax allowance employees can claim tax relief on their work-related expenses. By taking advantage of this programme you can reduce your financial burden while working remotely.

The programme can cover expenses such as heating, electricity (for your work area only), business-related phone calls, and other equipment you require for work purposes.

You cannot, however, claim tax relief for things you use for both private and business-related purposes. This includes your rent and your broadband service.

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Who is eligible for the work from home tax relief

The HMRC work from home tax relief 2023 programme is applicable to those who have worked from home for at least one day during the tax year.

It is important to note that the scheme is only available if you work from home because it is required by your employer. The scheme is fairly restrictive when it comes to eligibility. 

Examples of when you are eligible include:

• If your job requires you to live so far from your office that it would be unreasonable to commute there.
• If your employer does not offer any facilities (an office, for instance) in which you can perform your job.

Instances where you are not eligible for the work from home tax relief include:

• If your employment contract lets you work from home some or all of the time.
• If your employer has an office, but it sometimes is unavailable to you because it is full.
• Self-employed individuals or those who voluntarily choose to work from home are also not eligible for the scheme.

If you run errands for your employer in your private car, you are most likely eligible for mileage reimbursement, which we have also written a guide about.  To claim this, you will need to keep a logbook of your business mileage – and for that we recommend an automatic one, like the one we have developed here at Driversnote.

How much tax relief can I get for working from home? 

You can claim tax relief of up to £6 per week, without having to provide evidence of your expenses. 

If you incur expenses that exceed the work from home tax relief 2023 allowance, you can still claim tax relief for the excess. This does require that you can provide evidence of the expenses in the form of receipts, bills or contracts.

It should also be noted that you cannot claim tax relief if your employer covers the added expenses you incur from working from home.

Due of the nature of tax relief programmes, your actual tax savings are based on your income tax rate. If you claim the £6 per week, this means that:

• If you pay the basic tax rate of 20%, your actual savings will be £1.20 a week, or £62.40 a year
• If you pay the higher tax rate of 40%, your actual savings will be £2.40 a week, or £124.80 a year
• If you pay the basic tax rate of 45%, your actual savings will be £2.70 a week, or £140.40 a year

How do I claim the working from home tax relief?

To claim the tax relief you can use the HMRC online service or submit your claim through your self-assessment tax return.

As remote working becomes more prevalent, it is likely that the demand for work from home tax relief programmes will increase. Therefore, it is crucial to keep track of your work-related expenses and take advantage of this tax relief programme to maximise your tax savings.

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