As the impact of Covid19 on the workplace has receded, HMRC have updated their guidance on their rules for making a claim for costs when working from home. Where we have perhaps seen a light touch approach in this area for a couple of years, we believe that this is an area that HMRC might begin to pay more attention to.

In summary, the rules are as follows:

  • Where a company has an office and an employee has reasonable access to it, no ‘Use of home as office claim’ can be made
  • Where a ‘Use of home as office claim’ is made this should be either:
    • £6/week flat rate with no further supporting documentation; or
    • A more detailed claim which can be a higher value but must only include costs which are wholly and exclusively as a result of working from home. For example, claiming the increase in light and heat costs, or specific telephone costs, would be acceptable, but reclaiming mortgage interest or rent which would have been incurred irrespective of working from home are not allowed.

More significant arrangements can be set up as formal rental agreements but these are much more complex and we recommend seeking the advice of a tax advisor and solicitor before proceeding with these.

If you have any queries about this please call us on 020 3915 8585 or email us.