If you are working from home because of COVID-19 you may be able to claim Tax relief for your job expenses.
You can claim Tax relief for additional costs including: heating, metered water bills, home contents insurance, business calls or a new broadband connection. They do not include costs that would stay the same whether you were working at home or in an office, such as mortgage interest, rent or council tax.
You may also be able to claim tax relief on equipment you’ve bought, such as a laptop, chair or mobile phone.
You cannot claim Tax relief if you are choosing to work from home.
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 need to keep evidence of your extra costs.
- the exact amount of extra costs you’ve incurred above the weekly amount – you’ll need evidence such as receipts, bills or contracts.
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).
Click here to check if you can claim.
If you would like help or support on understanding what you can claim or what schemes are available to support your business during this difficult period, click here to contact us now.