If you’ve been working from home, you may be eligible to claim up to £140 in tax relief from HM Revenue and Customs (HMRC).
However, with the self-assessment tax return deadline set for January 31, 2025, time is running out to take advantage of this benefit.
This guide explains who qualifies, what expenses can be claimed, and how to apply for your tax relief before the deadline.
Key Details on HMRC’s Work-from-Home Tax Relief
| Aspect | Details |
|---|---|
| Eligibility Criteria | Must be required to work from home due to job nature or employer’s lack of office. Voluntary home workers do not qualify. |
| Claimable Expenses | Increased utility bills, business phone calls. Rent and broadband costs are not covered. |
| Tax Relief Amount | £6 per week. Basic rate taxpayers get £62.40 per year, higher rate taxpayers get £124.80. |
| Claim Deadline | January 31, 2025 (self-assessment tax return deadline). |
| How to Claim | Via self-assessment tax return on the HMRC website. |
| Official Resource | HMRC Work-from-Home Tax Relief |
Who Can Claim This Tax Relief?
To qualify, you must meet two key conditions:
1. You Must Be Required to Work from Home
You must be working from home because of:
- Your job requiring remote work, OR
- Your employer not providing an office.
If you choose to work from home voluntarily (even if your employer allows it), you do not qualify.
2. You Must Have Increased Household Costs
Your energy bills, phone costs, or other work-related expenses must have increased due to working from home. However, general living costs such as rent and internet bills do not qualify unless they are used exclusively for work.
How Much Can You Claim?
HMRC allows you to claim a flat rate of £6 per week without providing detailed receipts. The tax relief varies based on your tax rate:
| Taxpayer Type | Weekly Tax Relief | Annual Tax Relief |
|---|---|---|
| Basic Rate (20%) | £1.20 | £62.40 |
| Higher Rate (40%) | £2.40 | £124.80 |
| Additional Rate (45%) | £2.70 | £140.40 |
For higher earners, this tax relief can reduce your overall tax bill.
How to Claim the £140 Tax Relief from HMRC
If you’re eligible, follow these steps to claim your work-from-home tax relief:
1. Register for Self-Assessment (If Not Already Registered)
- If you haven’t filed a self-assessment tax return before, register online with HMRC.
- You will need your National Insurance number and personal details.
2. Gather Required Information
- Your employment details.
- Income records (such as P60 or P45).
- Details of any additional costs from working at home.
3. Complete Your Tax Return
- Log into HMRC’s self-assessment portal.
- Find the section for “Tax Relief for Employees”.
- Enter your claim for working-from-home tax relief (£6 per week).
4. Submit Before the Deadline
- Ensure your tax return is submitted by January 31, 2025.
- Late submissions can result in HMRC penalties.
Practical Tips for Maximizing Your Tax Relief
1. Keep Track of Your Work-from-Home Arrangement
- Save emails or letters from your employer confirming why you were required to work remotely.
2. Check Your Tax Code
- Your tax code should reflect your work situation.
- If incorrect, update it via your personal tax account.
3. Avoid Missing the Deadline
- Mark January 31, 2025 in your calendar.
- Set reminders to file your tax return on time.
