HM Revenue and Customs (HMRC) has issued a stark warning to Britons working from home, cautioning them to "don't get caught out" when claiming tax relief on work-related expenses. The tax authority shared this advice via a social media post on platform X, highlighting key guidelines for eligible individuals.
Understanding Eligibility for Tax Relief Claims
HMRC clarified that those working from home may be eligible to claim tax relief on specific costs, but only for expenses that are strictly work-related. This includes business telephone calls and the gas and electricity used for a designated workspace. Claims can be made for the current tax year as well as the previous four years, potentially resulting in a refund for many taxpayers.
How to Claim and Calculate Your Relief
Taxpayers have two options when submitting a claim: they can either claim relief on a flat rate of £6 per week or on the exact amount they have incurred. The relief is calculated based on the individual's tax rate. For example, if someone on the basic 20% tax rate claims relief on £6 weekly, they would receive £1.20 per week. However, HMRC emphasised the importance of fully understanding the system before making any claims.
Beware of Third-Party Companies
In its warning, HMRC specifically addressed the risk of online adverts and tax refund companies that offer to submit claims on behalf of individuals in exchange for a commission. On GOV.UK, the authority stated: "Don't get caught out by online adverts and tax refund companies who offer to make work expense claims for you so they can claim a commission." It further noted that if a claim is found to be ineligible, the individual remains responsible for any claims made on their behalf.
Direct Application for Full Entitlement
HMRC urged eligible individuals to apply directly through its official channels to receive 100% of the funds they are entitled to. GOV.UK explains: "It’s fast, free and simple to claim work expenses with us directly via GOV.UK. You won’t have to pay any agent fees or commission if you do it yourself." This direct approach ensures taxpayers avoid unnecessary costs and potential scams.
Broader Scope of Work Expense Claims
It is not just those working from home who can benefit from tax relief. If eligibility criteria are met, individuals may also claim for other work-related expenses, including:
- Uniforms, work clothing, and tools
- Vehicles used for work purposes
- Professional fees and subscriptions
- Travel, subsistence, and overnight expenses
- Purchasing other necessary equipment
Evidence and Considerations for Claims
Before submitting a claim, HMRC advises taxpayers to keep several key points in mind. Supporting evidence is often required to prove eligibility, and the type of evidence varies depending on the expense. Expenses must be entirely work-related and necessary for the job; claims cannot be made for costs already reimbursed by an employer. Additionally, tax relief on expenses does not always lead to an immediate repayment, as some are coded through to the following tax year.
For those with expenses under £2,500 who are completing Self Assessment, HMRC offers a quick digital claim service to save time. More detailed information is available on the Government website, ensuring taxpayers can make informed decisions and avoid pitfalls in the claims process.
