What Is Working From Home Relief?

What Is Working From Home Relief?

During the pandemic and lockdown, with the coronavirus restrictions, many of us found we were working from home. While this may have meant saving on transport and fuel to get to and from work, costs did add up elsewhere. For example, many households found that their utility bills were rising as a home that was previously empty during the day now needed heating and computers/laptops were running throughout the working day.

If you have been working from home during the pandemic, you may be entitled to a small amount of relief for these additional household costs. This is known as the working from home relief.

HMRC have stated that additional costs such as heating, metered water bills, house insurance, business calls or a new broadband connection could be included in the working from home relief. However, other household costs which remained the same, such as: mortgage interest, council tax or rent, could not be covered by the working from home relief.

How Does The Working From Home Relief Work?

If you have regularly worked from home during the pandemic, then you can claim for each applicable week. There are two ways in which you can do this. It is possible to claim £6 per week, from 6th April 2020. This can be done without any evidence of these extra costs.

However, if you know that the additional weekly costs are over £6 a week, it is possible to claim for the exact amount of extra costs. To do this, you will need evidence for these figures. This could include bills or receipts.

What Does The Working From Home Relief Mean For You?

The working from home relief will reduce the amount of tax that you have to pay. It’s important to note that the amount of relief you receive will be the based on your tax banding.

For example, if you are on the Basic Tax Rate of 20% you will get a weekly relief of £1.20 for every £6 claimed. For those of the Higher Tax Rate of 40% you will get a £2.40 weekly relief on the £6 claimed per week. Those on the Additional Tax Rate of 45% will get a £2.70 weekly relief on the £6 claimed, for each week it is claimed. Of course, if you need to claim more than £6 a week, the weekly relief will change accordingly.

 

If you want to know more about the working from home relief and how you can claim for it. Call our team of friendly Peterborough accountants now.

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Testimonials for AK book-keeping

Electronics online retailer

Our decision to choose the services AK Book-keeping and Payroll Services has turned out to be a really important enabler to the growth of our business and has delivered us fantastic value for money. Their accuracy and efficiency in compiling our accounts and payroll documents has allowed us to focus on the things which we do well and add real value whilst removing the distraction of unwanted and complex administration work. I would recommend them without hesitation.

Chris

AK Book-keeping
5
2015-10-23T16:25:46+01:00

Chris

Our decision to choose the services AK Book-keeping and Payroll Services has turned out to be a really important enabler to the growth of our business and has delivered us fantastic value for money. Their accuracy and efficiency in compiling our accounts and payroll documents has allowed us to focus on the things which we do well and add real value whilst removing the distraction of unwanted and complex administration work. I would recommend them without hesitation.

Carpet & Lighting retailer

Now that we have AK Book-keeping doing all our tax returns, wages but to name a few, we have more time to focus on the business and a lot more leisure time

Simon & Cathy

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2015-10-23T16:26:07+01:00

Simon & Cathy

Now that we have AK Book-keeping doing all our tax returns, wages but to name a few, we have more time to focus on the business and a lot more leisure time

Multiple Franchise Owner

I Periodically review my resources (like any business should) and on each and every occasion I have decided to retain AK Bookkeeping’s services. It’s one of those business I know I can depend on.

Bob

AK Book-keeping
2015-10-23T16:44:40+01:00

Bob

I Periodically review my resources (like any business should) and on each and every occasion I have decided to retain AK Bookkeeping’s services. It’s one of those business I know I can depend on.

John – Building Company owner

We engaged AK Book-keeping some two and a half years ago, from the outset their communication has been excellent. We were provided with a schedule of monthly costs and a clear indication of what was included. To date we have had no reason to consider changing from AK Book-keeping as their service has been reliable, efficient and cost effective.

AK Book-keeping introduced us to Xero accounting system from the outset and for a reasonable monthly fee we benefit from all the Xero facilities available and have access to view our account, use data and monitor our performance and it is all relatively simple. We would recommend AK Book-keeping and the Xero system.

John

AK Book-keeping
2016-02-05T16:33:23+00:00

John

We engaged AK Book-keeping some two and a half years ago, from the outset their communication has been excellent. We were provided with a schedule of monthly costs and a clear indication of what was included. To date we have had no reason to consider changing from AK Book-keeping as their service has been reliable, efficient and cost effective. AK Book-keeping introduced us to Xero accounting system from the outset and for a reasonable monthly fee we benefit from all the Xero facilities available and have access to view our account, use data and monitor our performance and it is all relatively simple. We would recommend AK Book-keeping and the Xero system.

Online Retailer

Les has worked with us for 12 years now and supported our Bookkeeping and Payroll needs. Always helpful, cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of Bookkeeping.

Online retailer

AK Book-keeping
5
2018-07-02T22:05:34+01:00

Online retailer

Les has worked with us for 12 years now and supported our Bookkeeping and Payroll needs. Always helpful, cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of Bookkeeping.

Peterborough online retailer

Les has worked with us for 12 years now and supported our bookkeeping and payroll needs. Always helpful and cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of bookkeeping.
AK Book-keeping
5
2018-09-19T18:24:06+01:00
Les has worked with us for 12 years now and supported our bookkeeping and payroll needs. Always helpful and cheerful and gets the job done efficiently. When required has helped us with other business related issues outside of bookkeeping.
5
3
AK Book-keeping