Reply to: Home as Office Expense During Corona Pandemic

[PerfectStorm]

When did it change from £4 to £6?

Edit: FY20 apparently, missed that

[TheCyclingProgrammer]

Just to be clear, the rule about choosing or having to work from home is only relevant if you want to claim the £6/week as a tax deductible cost on your tax return.

It’s not relevant if your employer reimburses you £6/week. They can do this even if you choose to work from home and those payments are automatically treated as tax free. No claim is necessary on your tax return and the payments do not need to be reported.

[northernladuk]

No, but my previous 5 months working for a European company was.

If there is a formal agreement to work from home and you are required to do so as part of the role then you can claim the £6. Informal or occasional work isn't allowed. The employer can reimburse it but you can also claim it on your end of year assessment

If it is a agreed you work from home a few days a week he employer can chose to reimburse the £6 but but you can't claim it on your SA.

If you do it causally because it suits you then you can't claim.

You can also claim for any mileage you do that the employer doesn't reimburse you for and other things don't forget.

Have a look at this page and go through the eligibility. It will take you to where you need to be to claim even if you don't do an SA.

Claim tax relief for your job expenses - GOV.UK

[cojak]

No, but my previous 5 months working for a European company was.

[northernladuk]

But covid lock down isn't regular.

[CheeseSlice]

Hmm.. I’ve never checked but does this include permies as well?

Asking for a friend...

I randomly found this page the other day:
Claim tax relief for your job expenses: Working at home - GOV.UK

You may be able to claim tax relief for some of the bills you have to pay because you have to work at home on a regular basis. You cannot claim tax relief if you choose to work from home.

Sounds like you get a big tick in that box

[cojak]

Hmm.. I’ve never checked but does this include permies as well?

Asking for a friend...

[Chart Accountancy]

Hi All,

Like most of you, recently I'm working only from home full time for my client.
In this case would it be acceptable to claim proportion of expenses such as rent & utility for home-as-ofiice instead of standard £4/w?

From 6 April 2020, you can claim £6 a week.

You can claim a proportion of your utility bills which are not fixed. Rent and mortgage payments are never allowable as you would still have to live somewhere even if you didn't work from home.

This article from FreeAgent has a helpful example: How do I calculate my working from home expenses? - FreeAgent

[northernladuk]

As ever, what a f--king stupid response.

If like many people their utilities bills are Direct Debited and averaged out over a 12 month period, then whether one is physically using any heating or lighting in April, their April bill will no doubt be paying in part for their winter months' usage.

So why should a company who's going to be renting an office for maybe two months in summer pay the winter bills of someone's home?

If it's long term then yes fair enough but if he's doing this just while he's in lockndown then it's pretty unreasonable.

[simes]

That article is rubbish. You cannot claim a proportion of fixed costs like council tax in this way as an employee or director. Only the self employed can use this method.

As a responsible citizen, and as it happens because I am calculating as such following this article, perhaps you could take it up with the authors of this article. They're not too far away.

[TheCyclingProgrammer]

If you want to do some calculating, this can offer an alternative.

What home office expenses can I claim as a limited company contractor?

Talk it through with your accountant and do something comfortable to both.

That article is rubbish. You cannot claim a proportion of fixed costs like council tax in this way as an employee or director. Only the self employed can use this method.

[TheCyclingProgrammer]

You can claim additional costs you have incurred if you can reasonably show how you calculated them. This has to be additional costs, not a proportion of fixed costs like rent. If you can’t then that’s what the £6/week is for.

[simes]

Hi All,

Like most of you, recently I'm working only from home full time for my client.
In this case would it be acceptable to claim proportion of expenses such as rent & utility for home-as-ofiice instead of standard £4/w?

If you want to do some calculating, this can offer an alternative.

What home office expenses can I claim as a limited company contractor?

Talk it through with your accountant and do something comfortable to both.

[simes]

As ever, what a f--king stupid response.

If like many people their utilities bills are Direct Debited and averaged out over a 12 month period, then whether one is physically using any heating or lighting in April, their April bill will no doubt be paying in part for their winter months' usage.

[northernladuk]

You aren't using any heating or lighting in this weather are you?