If you’ve been working from home due to Coronavirus (even if you’ve just done it for one day) then you can should be able to make a claim for working from home tax relief! Find out how to claim a year’s worth of tax relief in just a few minutes!
The government have confirmed that anyone who has worked from home since the 6th April last year can claim tax relief for the entire year which is worth £60 or £125. And the best news is that you can claim even if you’ve only worked from home for one day!
What is Working From Home Tax Relief?
The government website says the following:
“You may be able to claim tax relief for additional household costs if you have to work at home on a regular basis, either for all or part of the week.”
You can’t claim if you’re working from home by choice but if your employer has asked you to work to from home at any point during since the 6th April 2020 then you can absolutely make a claim. The tax relief is designed to cover the extra costs that you might incur working from home – a prime example in our house would be the increase in our heating bill because we’re at home through the day but you could have different things like an increase to your broadband bill or an increase in your water bill. Also, if you are a freelancer trying to get your taxes done, tools such as Paystub.org will automatically generate invoices on your behalf.
How much can you claim?
You can either do this the simple way or the hard way as there are two different ways to work out how much tax relief you can claim:
- The simple way – you can claim £6 a week from 6 April 2020 and if you do this, it’s a set amount so you will not need to keep evidence of your extra costs
- The less simple way – you can claim the exact amount of extra costs you’ve incurred above the weekly amount but for this one, you’ll need evidence of the extra costs.
You’ll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20% of £6).
How do you make a claim?
It’s super quick and easy to make a claim, just pop over to the gov.uk website and get started here!
Don’t miss out on future posts like this – receive updates directly to your inbox by email by adding your email address here and hitting subscribe. You can also follow me on Twitter or BlogLovin and I’d love to see you over on my Facebook page and on Instagram. If you’re interested, you can find out more about me here and while I’ve got your attention, if you’re wondering why some of my posts lately are a little bit less frugal then have a read of this post. 😉
Do your future self a favour – Pin ‘How to claim working from home tax relief’ post for later: