working from home tax refund

Many of us have found ourselves sent to work from home this year whilst employers can create a safer office environment for us to return to.

You may be able to claim tax relief for some of the bills you have to pay because you have to work at home on a regular basis. You cannot claim tax relief if you choose to work from home, so this is perfect for those of us who were sent home

You can only claim for things to do with your work, for example, business telephone calls or the extra cost of gas and electricity for your work area.

You cannot claim for things that you use for both private and business use, for example, rent or broadband access.

From 6 April 2020 your employer can pay you up to £6 a week (£26 a month) to cover your additional costs if you have to work from home. For previous tax years the rate was £4 a week (£18 a month).

If you’re already self-assessed like me because I’m PAYE fulltime and then have my own business too (this blog), then you add this requirement to your normal self-assessment form.

But if you’re employed and PAYE and have been asked to work from home then you need this link to begin your rebate request.

Working from home, particularly when you’re having to homeschool is tough and another form to complete my feel like a burden but even if it’s just to cover three months of lockdown, you can claim an extra £78. Then it suddenly seems worth the effort!

To make things easier for people, HMRC have said you will not need to justify the figure – meaning you won’t need to keep receipts or records.

If you’re not able to get online to fill in the form, you can always complete a postal P87 form.

You’ll be asked for your employer’s name and PAYE reference (which you can find on your payslip or P60), and your job title. So make sure you get these to hand before you begin completing the form. For postal P87s, you’ll need your national insurance number too.

Once you’ve submitted the claim, if you do it online you’ll hear back within a couple of weeks. However, as with everything at the moment, processing everyone’s claims may take normal than usual.