How to claim back tax if you’re working from home

Written by Lizzie Marlow on 28 September 2020

If you can work from home, then the government has advised that you do so. With winter just around the corner, here’s what you need to know about how to claim back tax when you’re working from home.

What difference does working from home have on bills?

If you’ve been working from home since lockdown, you may not have noticed a hike in bills due to the warm weather. If you have seen an increase in energy or food bills, the savings made from not traveling to the office may have justified this. We know that autumn and winter is likely to be a very different story, so it’s best to prepare now.

With temperatures plummeting, we are going to have to heat our home throughout the whole week. Powering your home office as the nights draw in is likely to leave you feeling a little short changed, but you can claim money back.

You could claim up to £6 a week back

According to price comparison site energyhelpline, energy bills could soar by nearly 20 per cent for those working from home five days a week. But, don’t fear. You could claim tax back right from the beginning of your working from home stint. Cash can be claimed back for things like heating and electricity. Yet, you won’t be able to claim for items that you use privately, like rent or broadband.

Martin Lewis has reported that you will be able to claim tax even if you’re only required to work one day from home. This is because many people are splitting their time between the office and home. 

How to claim tax back from HMRC if you’re working from home

While your employer can reimburse you directly for the costs incurred, many will not be in a position to do so. This means that you may choose to go directly to HMRC to claim back the tax.

Either speak with your manager if you’re claiming from work, or claim the money back as tax relief from HMRC.

To claim back from HMRC, you can either:

  1. Fill out a self-assessment form
  2. Complete an online P87 form 
  3. Fill out a postal form

You may find that you get the money back by paying less tax, rather than receiving a refund. If so, your tax code may be adjusted to show this.

Find out more on how employment and benefits have been affected by Coronavirus.

Filed under Industry News

This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.

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