If an employer doesn’t reimburse the costs incurred by an employee who is required to work from home the employee can claim a deduction, but only where:

  • costs are wholly, exclusively and necessarily in the course of doing their job
  • the job requires specific facilities, and these aren’t available at the employer’s premises or the nature of the duties means you must live at a distance from the employer’s premises that would make it unreasonable to travel; and
  • the employee can choose between working at the employer’s premises or elsewhere.

Examples

  1. Fiona lives in Aberdeen and is the Scottish sales manager for a company based in London. She performs his duties at home as her employer has no facilities nearby. She will be able to claim for the additional costs of working from home.
  2. Dan has applied for a job 300 miles from home. His new employer is happy to pay his relocation expenses or have him work remotely. He chooses to work from home, and this is put in his contract. As he had the choice of where to work, he will not be entitled to any deduction.

HMRC takes a tough approach to claims. To be allowed the expense it must be able to be identified separately from those which relate not only to working at home but also to private use of the home. For example, an addition to your home insurance premium to cover business use. Expenses for the home can be apportioned if you can reasonably estimate the amount which wholly and exclusively relates to business use.

Alternatively, in practice and in order to simplify matters HMRC will accept a deduction of £6 per week or £26 per month (£4 per week / £18 per month prior to 6 April 2020) where you can show that you incur some additional costs as a result of working at home. The amount of costs to not have to be justified only that there are some.

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