Employee’s Who Work From Home
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Employee’s Who Work From Home

There are 2 groups of employee’s:,

  • those who have to work at home and
  • those who choose to work at home.

Employee’s who HAVE to work from home

Relief can only be allowed for the additional cost of gas and electricity consumed while a room is being used for work, additional costs of water and additional costs of business telephone calls.

Where it is not practical to calculate these extra costs, HMRC allow a flat rate of £18 per month for monthly paid employees (£4 per week for weekly paid employees) to be made without justification, detailed records and paperwork.
Business telephone calls are not included in this flat rate so additional relief can be claimed for this.

Employee’s who CHOOSE to work from home

For those who choose to work at home then there may be an tax exemption for certain reimbursements paid by there employer.
Employers can make tax exempt payments to employees for the additional household expenses incurred in relation to the work area of the home.
Costs that are the same whether or not you work at home cannot be included.
To qualify, employees need a home working agreement where they regularly work at home.
If the room is used partly for business purposes and partly for home CGT PPR Relief will qualify in full.