Millions of Britons working from home have been put on high alert as HMRC issues a crucial warning about common mistakes when claiming tax relief for remote working expenses.
The tax authority has highlighted several pitfalls that could see honest workers facing unexpected investigations or even penalties, despite trying to legitimately claim what they're owed.
What You Can Legitimately Claim
Under current rules, employees working from home can claim tax relief on additional household costs incurred while performing their job duties remotely. This includes:
- Heating and electricity for your work area
- Business-related phone calls
- Internet access specifically for work purposes
- Essential stationery and office supplies
The Common Mistakes That Could Land You in Trouble
HMRC has identified several frequent errors that are raising red flags:
- Overclaiming for household bills without proper calculation
- Claiming for costs that would exist anyway regardless of working from home
- Inadequate record-keeping to support claims
- Confusing capital expenses with allowable running costs
Simplified Claims Process Available
For those who prefer simplicity, HMRC offers a flat rate claim of £6 per week without needing to provide detailed evidence of extra costs. However, if your additional expenses are higher, you can still claim the actual amount with proper documentation.
"Many people don't realise that working from home occasionally doesn't qualify for the full relief," explains a tax specialist. "You need to be working from home regularly, either all week or for a significant portion of it."
Who's Most at Risk?
With hybrid working becoming the norm for many office workers, HMRC is paying particular attention to claims from employees who split their time between home and the office. The key is being able to demonstrate that working from home arrangements are necessary rather than simply convenient.
The warning comes as more people than ever continue to work remotely, with recent figures showing approximately 40% of UK employees regularly work from home at least some of the time.
HMRC advises all remote workers to review their claims carefully and ensure they maintain proper records to avoid any potential issues down the line.
