At present a large portion of the UK population have been asked to work from home. Existing tax rules allow employees to claim a tax deduction for “working from home expenses”.

How much can I claim?

There are two options:

1. A simplified fixed rate – From 6 April 2020 this is £6 per week (£24 per month). For this option you don’t need to keep records.
2. Working out your expenses on an accurate basis. This could work out as a higher claim than option 1, but will take more time to calculate. Relief under this option can only be allowed for:

• The additional unit costs of gas and electricity consumed while a room is being used for work
• The metered cost of water used “in the performance of the duties” (monthly water costs not allowable)
• The unit costs of business telephone calls, including broadband costs.

Invoices and a calculation of how you calculated your figure would need to be kept. Costs that are not deductible include council tax, rent, water, mortgage and insurance.

Of course, if your employer reimburses you for working from costs then your claim will be reduced.

How do I make a claim?

There are a couple of ways to do this.

1. If you already complete a tax return, a claim can be made on the tax return
2. By completing a P87 form – this can be completed online or via the post.

For more guidance see the below link.

https://www.gov.uk/tax-relief-for-employees/working-at-home

Please note there are different rules for the self employed. For guidance on this see the below link.

https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home