Homeworking employees : & UK Tax


Homeworking employee & UK tax payer – Have you claimed your tax relief?

As a homeworking employee & a UK tax payer you are entitled to this relief.  It is quick & easy to do, & there is a help line if you have any concerns.

Claiming Tax Relief for Homeworking employees


Basically, if you are a homeworking employee – That is you have an employer & you pay Tax & NI rather than being self-employed


You are employed as a homeworker rather than having the option to work in an office but choose to work from home…

then you need to claim your tax relief.

Unlike a company, you can only claim for things that are 100% for work use & not  for personal use.  This means that if you have to provide your own work-only PC, or you have put in a dedicated telephone line with or without broadband, then you can claim tax relief on these things.  The bills can be in your personal name, as long as they are used only for work.  This would be most suitable for people who rely on  their mobile & data for personal use, or have a separate dedicated additional line for work.

The claim is most suited for things that you pay regularly.  Either the phone/broadband bill as discussed or perhaps a PC that you are paying off over say 36 months that you would not have if it was not a job requirement. If any of these circumstances fit your situation, then you are losing money if you haven’t told the Tax Man.

If you do not have any of these expenses, there is an additional claim that you can make without providing any documentation.  You ARE eligible for Tax Relief on your gas & electric.

Tax relief for Homeworkers – Utility bills

If you worked in an office, your employer would foot the utility bills.  As a homeworker, you are forced to cover these costs yourself.  The Tax Man says that you should not have to pay tax on the money you spend on the bills to keep your working space warm or cool, or to power your office equipment.  At the very least, you need light.

At the time of writing, you can either calculate & explain the amount of relief you claim, OR you can simply tell HMRC that you are a homeworking employee, & just claim the standard amount.  At the time of writing this amount is £4 per week, or £18 a month.

The gas & electric portion is a basic amount that all homeworking employees must claim.  If you use equipment that needs electric & you maintain a workspace, then claim this at the very least. If you have never claimed this, then you can backdate your claim for a number of years.

Sounds unreal or too easy?  It isn’t.  Checkout this link, & just follow the steps.  If you are unsure, call them.  Don’t give away more of your precious income than you have to.  The onus is on you to claim what is yours.



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