How to claim back working from home costs in the UK

Are you still unsure of how to claim back working from home costs? The rules were more generous during the pandemic, whereas now they have tightened things up.

However, many that work from home will still be able to claim back working from home costs and might not be aware of the process. Make sure you look into your tax relief rights and other options.

If you work for yourself, you will be familiar with what costs are tax-deductible and how to do a tax return. But if you work for another organisation and are based in the UK, you may be asking yourself, what can you claim back if working from home?

The guidelines can change annually, so keep yourself up-to-date and informed. Make sure you are getting what you are owed as a remote worker incurring extra expense at home.

Due to the cost of living crisis, it’s particularly important to ensure you are covering any expenses you can and claiming taxes back too. There are different options, so see what works best for your circumstances and claim back working from home expenses ASAP!

This post may contain affiliate links. If you click them and make a purchase, I may receive a small commission. This is at no extra cost to you, but helps me run this site. For more information, visit the Disclaimer page. There may also be affiliate links for products from my own shop.

Save for later or to share – Claim back working from home costs

1. Claim back working from home tax relief

During the pandemic, you only had to work one single day from home in an entire year to claim tax relief for that whole year. But that is no longer the case and not everyone will be eligible for tax relief now.

We will go into the current rules below, but key things to be aware of are:

• If you didn’t previously apply in previous years (which were more generous) you can still make a back-dated claim
• It is no longer possible to claim working from home tax relief because of the pandemic or if you have had coronavirus more recently and that prevented you going into the office
• You are also not allowed to claim if you work partly at home and partly in your office/workplace. You even can’t claim if your office is too full and there’s no seat for you!
• The only way to claim now is if your employer no longer provides an office/workplace and you have no choice but to work from home, or the nature of your job requires you to live far away from your office.

If you believe you are eligible, there are different routes to claim. At the first stage, choose either:

1. Your employer pays your expenses and they go into your salary tax-free. Speak to your employer about the process, the amount they will pay and if it is the best option. Not all employers will do this. It may be easier to go for option 2.
2. You claim yourself directly via HMRC.

If you choose option 2, there are further options. Either, you claim the exact amount of extra costs and will need to provide evidence such as bills and receipts. This will be a lengthy task.

Or, the easier and faster way is to accept the current rate of £6 a week as a contribution to your bills and extra expenses (mainly phone calls, internet, electricity, gas etc.) and complete the online form. There is no need to provide evidence if you choose this option.

Once you’ve completed the online form, it should be a quick process, whereby your tax code is changed and you see you have a higher tax allowance to cover the extra £6 a week on your next pay e.g. you have a little increase in take home pay.

It might not seem like much, but you incur extra costs working at home and it all adds up over the year, so ensure you get your tax relief. You must remember to apply each year and remember to claim back for previous years, if you didn’t already.

2. Claim back further running costs

Working from home means we can save money on coffees and lunch out, as well as commuting but it does increase our costs at home in terms of gas (especially in winter to warm your home), electricity, internet connection and so on.

Speak to your employer about their policy, as some won’t cover extra if you’re claiming tax relief while others may fund further expense or have other benefits. Your employer may consider extra support if you have excess expense that you believe isn’t covered sufficiently by the tax exemption.

It might be a contribution towards your energy bills, internet costs or contents insurance. If you can prove that £6 a week isn’t enough, then show evidence to support your request.

If you are using company equipment at home, check with your employer if it is covered under their insurance (and covered while at your home). Or see if they will contribute towards your content insurance as you may need to change your policy to include the office equipment.

Claim back working from home costs that creep up in sneaky ways so you aren’t out of pocket!

3. Claim back for equipment you need

You should always investigate thoroughly what equipment your organisation will provide when working from home. Don’t assume it is only the laptop and nothing else.

Many workplaces now understand that employees need a safe and comfortable home work set up to prevent injuries such as Repetitive Strain Injury (RSI) or back pain. They may do a remote assessment via zoom or ask you to complete a form regarding your situation and needs.

Don’t make my mistake and sit at your hard kitchen chair for a year before doing your back in! Many organisations welcome requests for essentials such as a good ergonomic chair, a separate Bluetooth keyboard and mouse and a laptop stand to lift your laptop up as a monitor.

This supportive equipment is so important for a comfortable working from home experience which you can read more in the post on the essentials for home office setup. If you’re purchasing yourself, you can find affordable yet game-changing tools for every budget.

Find out what the rules are at your workplace. Perhaps there is a set budget and you can choose your own items within those limits, or maybe they have standard equipment they order for you or already have in stock.

But do ask, as you could cause real injury to yourself if you don’t have a supportive setup at home. And it would be frustrating to buy everything yourself and then find out they would have covered it!

Final thoughts on how to claim back working from home costs

If you haven’t considered all your options on how to claim back working from home expenses, you should now be able to get going. Please do check your own eligibility and share this article with friends and family that could benefit.

The rules do change, so make sure you keep up-to-date with UK Government tax rules and your workplace policy each year. And remember to claim back for previous years if you forgot to!

This post is geared towards UK readers but if it’s made you realise you are eligible for expenses or tax back in your own country, do check out local government tax rules and your company policy.

Claim back working from home costs if you can wherevere you are and let me know below what’s worked for you in your location.

If you’re self-employed in the UK and unsure of the process, read up on what you can claim for. There is certainly plenty you can claim back for as a small business.

Read more hacks on remote work life such as how to connect with colleagues when working from home and how to ensure you take time off when sick and working from home.

If you are looking to save money generally, check out cost cutting tips at home and how to avoid impulse buying.

Please bookmark and share with others that needs to claim back working from home costs.