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. This includes if you have to work from home because of coronavirus (COVID-19). The home-working expenses are incurred wholly, exclusively and necessarily in the performance of the duties of the employment.

You may be able to claim tax relief for: gas and electricity, metered water, business phone calls, including dial-up internet access. If a Broadband internet connection is new because it requires to work from home and reimbursed by employer than it is not taxable. If the employee has broadband installed for private use, then no tax relief claim is allowed. Also, you cannot claim tax relief from HMRC if you choose to work from home and employer does not reimburse their expenses.

You can either claim tax relief on £6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) - you will not require to keep evidence of your extra costs. If you have incurred above this weekly amount - you will need evidence for expenses such as receipts, bills or contracts. If you purchase home office equipment because of COVID19 and employer reimbursed the amount than a temporary tax and NIC exemption will apply. If costs are not reimbursed, tax relief may be claimed directly from HMRC. HMRC will accept a claim for homeworking for the whole 2020-21 and 2021-22 tax year.

This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.