How to Claim Work From Home Tax Relief?

Have you heard of work-from-home tax relief and are wondering about how you can claim it?

Well, in this article, we’ll provide all the answers. So, keep on reading to find out how to claim work-from-home tax relief.


Check eligibility

Check eligibility

To claim work-from-home tax relief, you need to, of course, be eligible for it.

Not every job is eligible; the only people who can receive work-from-home tax relief are those that were in some kind penalized from the fact that, during the pandemic, they were forced to work from home.

So, for example, you can obtain tax relief if:

  • You were forced to work from home during the pandemic;
  • Your employer doesn’t have an office, so you are forced to work from home;
  • Your job requires you to live far away from your office, so you can’t just go to your workplace every morning; you need to, instead, work from home.

On the contrary, you can’t claim work-from-home tax relief if:

  • You had the chance to go to the office but decided to work from home.
  • You are self-employed, and you decided to work from home. However, there are some tax relief solutions for this category of workers: they cover only the expenses designated to your work (there is no tax relief for personal expenses).

Read: How Do Tax Relief Companies Work?

Also Read: What Is The Tax Relief Credit?

Calculating tax Deductions

The tax relief is calculated based on the rate at which you pay your taxes. It, therefore, can vary from person to person. There are basically two ways in which you can calculate tax deductions:

1. Simplified Method: In this method, you need to take the square footage of your home office and multiply the same by $5 per square foot up to a maximum limit of $1500 a year. Under this method, you can also get a deduction for other expenses, such as mortgage interest.

2. Regular Method: This method allows deductions on the full home office cost., based on the percentage of your home you use as your office. For example, if your home office accounts for 7% of your home, then you get 7%tax deduction. This method is a bit more complicated and requires more time and effort for filing.

Also Read: Tax Defense Network Review

How To Claim The Work-From-Home Tax Relief?

How To Claim The Work-From-Home Tax Relief

The first thing you need is your Government Gateway username and password.

If you don’t have one yet, you can create the credentials on the Government Gateway website providing your data and these papers:

  • your national insurance Number
  • a recent payslip or P60.

Now you can log in to the platform and provide the needed information. The main piece of information you’ll be asked for is the date you started working from home.

After that, your PAYE code will automatically change, and you’ll start paying less tax every month.

If you need to receive tax relief for previous years, instead, you need to apply for that separately.


What Happens Next?

The Government will go through the verification process of the information you’ve provided and then approve the tax relief.

They will inform your employer about how much taxes they need to deduct from your payroll: the tax relief is received directly in your salary.

Should You Claim Work From Home Tax? Hear it From Reddit Users!

Tax relief for working from home 2022/23 – Should I claim?
by u/needlessfane in UKPersonalFinance

Exceptions For Home Based Workers

These are some of the exceptions for home-based workers:

  1. U.S. military reservists of the Army, Coast Guard, Navy, Air Force, National Guard Marinesor Public Health Service may be able to deduct some expenses.
  2. Teachers of kindergarten through 12, principals, counselors, and aides may deduct some expenses for software, computer, supplies, books, etc.
  3. People having a physical or mental disability can deduct work-from-home expenses, including attendant care.
  4. Performing artists who have performed for minimum two employers during a tax year adjusted $16,000 or less of gross income before deductions incurred expenses of 10% of gross income.
  5. Elected or appointed local and state government officials may claim deductions if they were compensated on a fee basis or in part.

Also Check Out Alg Tax Resolution Reviews

Can I Claim Work-From-Home Tax Relief If I’ve Worked From Home For One Day?

This is a very unlikely situation, but – theoretically speaking -yes, you can claim WFH tax relief even if you have actually worked from home only one day.

Wrapping Up

Taxes can sometimes be complicated to understand, but having little knowledge of things can help you immensely.

In this article on how to claim work-from-home tax relief, we share all the necessary information that will help you understand and calculate your taxes.


What all home office expenses are tax deductible?

If you have a home office and are self-employed or a freelancer, then you can get deductions for your home office equipment, such as a printer, modem, or furniture like a chair, desk, etc.

What if I did freelancing for had a home office for a few months?

Yes, you can get a partial tax deduction if you were running a home office or were a freelancer only for a few months.

Can I still get tax deductions if I use the same space for my side gig and W-2 job?

No, you will not get tax deductions in such a case. IRS offers tax deductions only if you use your home office or dedicated space for running your self-employed business.

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