Working from Home in the UK – What Expenses Can I Claim?
With the changes to our lives due to the pandemic, many of us have been forced to work from home, and a lot of us stayed home for good. This can have its benefits, such as a more comfortable and flexible working environment and avoiding the daily commute.
But what about all of those unplanned costs associated with working from home? Thankfully, there are some tax reliefs available for people working from their homes in the UK that could help you to offset some of those additional costs.
When it comes to claiming expenses when working from home, there is an important distinction between what is considered ‘qualifying’ expenses and non-qualifying expenses. Qualifying expenses are those that can be claimed as tax reliefs against your income tax bill.
Non-qualifying expenses are those that cannot be used for tax relief and should not be claimed on your taxes. It’s important to understand this distinction before filing your taxes, so make sure you check with your accountant or other qualified person if you are unsure which category an expense falls into.
So what exactly can you claim when it comes to working from home costs?
Generally, you can only claim qualifying expenses related directly to your job or business – i.e., those that would otherwise need to be paid if you were employed in a traditional workplace environment (such as utility bills or internet charges).
You may also be able to claim certain types of equipment that you need for work purposes but would not normally pay for yourself (such as a laptop or phone). Additionally, depending on your contract with an employer, they might cover some of these costs too – again, it’s best to check with them first before making any claims yourself.
It is also important to note that while you may be able to claim back these qualifying items on your taxes, it doesn’t necessarily mean they will always be tax free.
For example, if you use part of your home exclusively for business purposes then HMRC may charge Income Tax on any money made through renting out part of your property – so make sure you’re aware of any potential implications before claiming anything!
Another way in which taxpayers can save money when working from home is by claiming capital allowances on any assets purchased for business use – this includes things like desks, chairs and office equipment. In fact most everything you could buy on The Office Crowd could be claimed.
Be sure to keep receipts, even for second hand office chairs. When you are doing your home office set up, make sure you take into account everything that you have purchased for working from home. Including little items, like a back support for your chair, or better yet, an ergonomic chair in the first place.
You can also take into account items like laptop stands, and boosters for your feet, if your office chair doesn't allow for your feet to comfortably touch the ground. We have more articles on this under ergonomics.
In fact, it is possible for taxpayers who own their own homes used exclusively for business purposes (i.e., no living accommodation) to claim 100% capital allowances on all eligible assets purchased up until April 2022! These allowances must then be claimed within two years after the end of the tax year in which they were purchased - so make sure you take advantage while they are still available!
Finally, depending on whether or not you own or rent your property, there may also be other ways in which taxpayers can reduce their overall tax bill when it comes to Working From Home costs. For instance, landlords may qualify for mortgage interest deduction and Private Finance Initiatives (PFI) payments; whilst homeowners may benefit from reduced Stamp Duty Land Tax rates and lower council taxes due to the fact that their home is being used specifically for professional purposes.
Again though – please bear in mind that these situations vary greatly depending on individual circumstances so do check with a professional advisor first before making any assumptions about potential savings!
In conclusion then:
when it comes down to getting some financial relief from Working From Home costs in the UK there certainly are options available -
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