What is Working From Home Tax Relief in Scotland?

Can you claim tax relief for working from home due to Covid-19?

The requirement to work from home during the coronavirus pandemic has led to increased costs for employees throughout Scotland, and the government has addressed this issue by introducing working from home tax relief.

The new tax relief applies even if you’ve only worked from home for one day during the 2020/21 tax year. So how does this tax relief work in Scotland, and how much can you claim back?

Are you eligible for working from home tax relief?

You need to be employed in order to be eligible for this tax relief, which is claimable via a new HMRC microservice. If you’re self-employed you can still claim for work from home expenses, but you need to do so through your self-assessment tax return in the usual way.

Working from home tax relief is a different scheme that addresses the fact a significant number of people who would normally work in an office have been requested to work from home by their employer.

One key factor that we mentioned earlier is that you only need to have worked at home for a single day to be able to make a claim. Your employer must have made the request, however – if you requested to work from home yourself, this tax relief doesn’t apply.

What can you claim under working from home tax relief?

In addition to a proportion of your heating and lighting costs, you can claim for such expenses as phone calls made in relation to work, office stationery, and printer paper or ink. These types of costs can add up to a significant sum overall, so making a claim helps to ensure you’re not out-of-pocket having had to work from home.

Energy bills in particular may be a concern when working from home, especially with an increase in the energy price cap. So how much can you claim?

• £6 per week without providing HMRC with proof of costs
• If you claim more than £6 per week you may need to provide evidence of the expenses in the form of receipts or bills. It’s important to keep these in case HMRC request them in support of your claim.

How to make a claim for working from home tax relief in Scotland

There are three ways to make a claim for working from home tax relief:

• Request that your employer pays you £6 per week tax-free, although they aren’t obliged to do so
• Claim through the online HMRC microservice – the tax relief will be applied via your tax code
• If you file a self-assessment tax return as an employee, you can make your claim this way

If you’re a basic rate taxpayer paying 20% tax you’ll receive £62.40 for the year, and £124.80 if you pay tax at the higher rate of 40%.

For more information on working from home tax relief in Scotland, or for help in making a claim, please contact our expert team at Scotland Debt Solutions. We can offer you a free, same-day consultation, and work from offices throughout Scotland.