Claim back when working from home

Countless people are working from home due to the Covid-19 pandemic, and now with new tiers being created, it looks like working from home may be here to stay in 2021 and beyond.

Working from home has its benefits, but also some negatives. With extra heating and extra lighting to pay for, do you know the rules that have been put in place which allow you to claim for these additional expenses?

Typically, HMRC allows employees who have to work from home to claim up to £26/month (£6/week) as a deductible expense against employment income, but only when there is a home working agreement as part of their contract, and they don’t receive the full homeworking allowance from their employer.

Until April 2021, because of Covid-19 restrictions, if you have been required to work from home, even if it’s just for a day, you’re able to claim for an entire year, whether you work full-time or part-time. After April 2021 home working expenses allowance will revert to the original rules.

HMRC has made a new portal and is pushing employees to claim homeworking costs there. HMRC estimate that 54,000 people have already claimed via this portal. The online claim will alter the employee’s PAYE code, so the relief is given at source for the rest of the tax year.

Please call us on 01473 744 700 or email us at to find out more.