Working from home has been and for some businesses is still, a requirement for staff members across the UK. Did you know that employees can reclaim increased expenses, whilst working from home?
Additional costs can only include things that are do with work, e.g. business calls, extra gas and electric costs for the areas that you are working in (claims cannot be made for things that are used for both personal and business use, e.g. broadband).
There are two ways to claim;
- Employers can pay employees an additional £6 a week tax free, increasing net pay by £6 (employers this does not need to be reported on a P11D, unless you chose to enhance this rate).
- Claim tax relief on £6 per week (work £1.20 per week at 20% tax and £2.40 per week at higher rate). This amount is then deducted from your taxable income each week. To do so employees would need to claim as below…
Claiming Tax Relief
- Reclaims can be done on a self-assessment form (if an employee is usually required to do one, this would be the quickest way to claim).
- Alternatively, employees can fill out a P87 form through the government gateway.