You can claim a tax deduction for extra household costs if you have to work from home regularly, i.e. whole week or even part of the week. This also applies if you have to work from home due to coronavirus (COVID-19).
You cannot qualify for a tax credit if you choose to work from home.
Additional costs include things like heating, water bills, home insurance, business calls or a new broadband connection. You can also claim tax credit for equipment you have purchased, such as a laptop, chair or cell phone.
It does not include expenses that will be the same whether you worked at home or in the office, such as mortgage interest, rent or city tax.
How much can you demand?
You can apply for a tax relief on:
- £6 per week from 6th April 2020 (for previous tax years the price was £ 4 per week) - you do not have to prove your extra expenses
- the exact amount of extra expenses you have incurred in addition to the weekly amount - you need proof such as receipts, invoices or contracts
You will receive a tax relief based on the rate at which you pay tax. For example, if you pay a basic tax rate of 20% and apply for a tax relief on £6 per week, you will receive a tax credit of £1.20 per week (20% of £ 6).
To understand if you are eligible to claim tax relief you can check in the link below:
https://www.tax.service.gov.uk/claim-tax-relief-expenses/only-claiming-working-from-home-tax-relief
