If you’ve been working from home, you may be eligible for up to £140 in tax relief from HM Revenue and Customs (HMRC).
However, with the self-assessment tax return deadline on January 31, 2025, time is running out to claim this benefit.
This tax relief helps offset the additional costs of remote work, such as higher electricity bills and business-related phone calls. Here’s everything you need to know about eligibility, the claim process, and how much you can receive.
Who Can Claim the £140 Tax Relief?
Not all remote workers qualify for this tax relief. To be eligible, you must meet the following criteria:
1. Mandatory Remote Work
- You must have been required to work from home due to your job’s nature or because your employer did not provide an office.
- Voluntary remote workers (those who choose to work from home but have access to an office) do not qualify.
2. Additional Household Costs
- The relief covers extra expenses incurred from working at home, such as:
- Higher electricity or gas bills due to extra heating, lighting, or computer use.
- Business-related phone calls.
- Excluded expenses: Rent, broadband costs, and other general household bills do not qualify, unless used exclusively for work.
How Much Can You Claim?
The tax relief is calculated as £6 per week, with the final amount depending on your tax bracket:
| Tax Rate | Relief Per Week | Annual Total |
|---|---|---|
| Basic Rate (20%) | £1.20 | £62.40 |
| Higher Rate (40%) | £2.40 | £124.80 |
| Additional Rate (45%) | £2.70 | £140.40 |
Even though these amounts may seem small, they can reduce your tax bill at the end of the year.
How to Claim the £140 Tax Relief
You need to submit a self-assessment tax return to claim this relief. Follow these steps to ensure you don’t miss out:
1. Register for Self-Assessment
- If you haven’t already, register for self-assessment on the HMRC website.
- You will need your National Insurance number and personal details.
2. Gather Your Information
- Collect documents such as your income details and any additional expenses related to working from home.
- If you’re claiming the flat rate of £6 per week, no receipts are needed.
3. Complete Your Tax Return
- When filling out your self-assessment, include your claim for working-from-home tax relief.
- If using the flat rate, simply enter the amount – HMRC does not require proof.
4. Submit Before the Deadline
- The deadline for online tax returns is January 31, 2025.
- Paper submissions must be sent by October 31, 2024.
- Late submissions incur a £100 penalty, so don’t wait until the last minute.
Practical Tips for a Smooth Claim
1. Keep Records
- While HMRC doesn’t require evidence for the flat rate, it’s good practice to keep records of your remote work status and employer communication.
2. Check Your Tax Code
- Make sure your tax code is correct, as incorrect codes may lead to overpayment or underpayment.
- You can check and update your tax code through your HMRC personal tax account.
3. Watch for Deadlines
- Set reminders for January 31, 2025, to avoid missing the deadline.
- If you miss the deadline, you could lose your claim and face a late penalty.
The £140 HMRC tax relief is a simple but valuable benefit for remote workers. If you’re required to work from home, ensure you claim before January 31, 2025, to reduce your tax bill.
Take a few minutes to check your eligibility and submit your claim, so you don’t miss out on this easy tax-saving opportunity.
