Working from home allowance, how to claim?

[alistair1234]

I've been working from home (remote sales manager), for just under 4 years now. I was told by someone that you can claim £4 per week back, to cover costs like heating and electricity at home (or cover the vat on it).

I'm not exactly sure how to do this. I was also under the impression you could go back 5 years to claim?

Can anyone help?

[Marlin45]

Bookmarked.

I am in the same boat but I was 'reliably' informed I was entitled to nowt (though I have now persuaded my employer to pay £15/mth internet access).

[PurpleMoonlight]

Who did this someone say you could claim it back from?

[Countdown]

alistair1234 said:

I've been working from home (remote sales manager), for just under 4 years now. I was told by someone that you can claim £4 per week back, to cover costs like heating and electricity at home (or cover the vat on it).

I'm not exactly sure how to do this. I was also under the impression you could go back 5 years to claim?

Can anyone help?

Your employer can pay you £18pcm tax/NI free. I don't think it's something you can claim back through self-assessment but I could be wrong.

[Quickmoose]

About to be in this boat too...
this I'm assuming is the way to get started....

https://www.gov.uk/tax-relief-for-employees/how-to...

[alistair1234]

Quickmoose said:

About to be in this boat too...
this I'm assuming is the way to get started....

https://www.gov.uk/tax-relief-for-employees/how-to...

This is actually what i'm talking about

https://www.gov.uk/tax-relief-for-employees/workin...

Which is number 8 on your link above.

[alistair1234]

Countdown said:

Your employer can pay you £18pcm tax/NI free. I don't think it's something you can claim back through self-assessment but I could be wrong.

I've never done self assessment before, but in that link above it seems like I am able to claim back essentially £200 a year without providing proof. I was also under the impression that it can be up to 5 years in the past, hence me leaving it for 4 years so I can claim a lump sum.

[Sheepshanks]

alistair1234 said:

I've never done self assessment before, but in that link above it seems like I am able to claim back essentially £200 a year without providing proof. I was also under the impression that it can be up to 5 years in the past, hence me leaving it for 4 years so I can claim a lump sum.

It means you can put it on your company expenses claim and you won't be taxed on it. We do it.

[Quickmoose]

alistair1234 said:

Quickmoose said:

About to be in this boat too...
this I'm assuming is the way to get started....

https://www.gov.uk/tax-relief-for-employees/how-to...

This is actually what i'm talking about

https://www.gov.uk/tax-relief-for-employees/workin...

Which is number 8 on your link above.

All part and parcel of the same process though no?
You fill out the form P87 via no.2, to claim tax relief on the things mentioned in no.8.

[bogie]

Fill it out as business expense on your self assessment online. The rate you could clam changed over the last 4 years so do check. Its not a huge amount, You get tax relief on a few hundred quid for working from a home office.

If you are contractually working at home most days you could work out by the more complex method. You need to provide more proof (keep records) Add up mortgage interest, water, gas, leccy, council tax, insurances etc for total yearly bills then divide by your habitable rooms and percentage you are in the office. Say £15k total house costs divide by 7 rooms x 70% in home office = £1500 yearly home office cost you can get tax relief on . Put the maths in the other expense comments section of your tax return.

Ive been home based for 10 years and it helps claw back some tax.....

[CoolC]

I'm PAYE and work from home.

https://www.gov.uk/tax-relief-for-employees/workin...

You claim on your tax free allowance. It's pretty simple, but you will need to complete and send through the form four times for the back dated years (IIRC you can back claim up to 6 years)

Once you've done it once though it stays on your name, so carries forward the following years.

Edited by CoolC on Friday 10th November 19:54

[mikeiow]

I was once told that if you do this, then should you later sell, there may be a tax liability (normally capital gain free)....
I may have been lied too, but have to admit I have never claimed....

[bogie]

mikeiow said:

I was once told that if you do this, then should you later sell, there may be a tax liability (normally capital gain free)....
I may have been lied too, but have to admit I have never claimed....

I think thats if you have used part of your home for running a business from i.e. the business is legally based from your property, has no other premise..... Versus being an employee of a company elsewhere and having an office at home to work out of.

[oop north]

bogie said:

mikeiow said:

I was once told that if you do this, then should you later sell, there may be a tax liability (normally capital gain free)....
I may have been lied too, but have to admit I have never claimed....

I think thats if you have used part of your home for running a business from i.e. the business is legally based from your property, has no other premise..... Versus being an employee of a company elsewhere and having an office at home to work out of.

My understanding is that if a particular part of your home has only business use, then capital gains on that part may become taxable. Doing something else in the space some of the time should provide protection

[bogie]

oop north said:

bogie said:

mikeiow said:

I was once told that if you do this, then should you later sell, there may be a tax liability (normally capital gain free)....
I may have been lied too, but have to admit I have never claimed....

I think thats if you have used part of your home for running a business from i.e. the business is legally based from your property, has no other premise..... Versus being an employee of a company elsewhere and having an office at home to work out of.

My understanding is that if a particular part of your home has only business use, then capital gains on that part may become taxable. Doing something else in the space some of the time should provide protection

Ahh...that would make sense. My study/office is used at weekends for non business use....hence I dont claim tax relief on the running costs of it 100%,

Still worthwhile to get another 600-700 a year tax allowance, if you are higher rate tax payer.

[jonwm]

My employer pay me £18 through expenses, they can't pay anymore due to tax liability

[Quickmoose]

jonwm said:

My employer pay me £18 through expenses, they can't pay anymore due to tax liability

A day...week...month?

[Tahiti]

I get nothing from work for working from home but save on the travel costs which works out well for me.

However, I'm intrigued by this now.

[Quickmoose]

Tahiti said:

I get nothing from work for working from home but save on the travel costs which works out well for me.

However, I'm intrigued by this now.

My company is the same. nothing yet for which they'll reimburse me - probably for the reason you give, they're making my life easier.
But there are tax breaks either without going self assessment or if the maths are strong go all in with receipts and stuff

[bogie]

Quickmoose said:

jonwm said:

My employer pay me £18 through expenses, they can't pay anymore due to tax liability

A day...week...month?

Its £18 a month, tax free

details on HRMC website https://www.gov.uk/tax-relief-for-employees/workin...

so you either claim tax relief on that, or your employer could pay you that extra.....

that is great for "casual" work from home a day or two a week; it all helps claw a bit of tax back

If you work from home 4-5 days a week consider keeping your bills/statements for 5 years and do the math, you could get tax relief on more.....