Tax rebate for working from home

gadgeteer_2

Hi all

I currently work from home. My contract with the company says I am officially home based.

I've heard that I can get a tax deduction for the extra costs of working from home and according to the HMRC website I can claim some of the costs back.

My question is will there be any long term implications of claiming part of my home as use for business? (I'm not self employed). Would this mean I will have to complete a tax return each year to claim it back or will calling them up and telling them what I estimate to be the costs to be sufficient?

And lastly, can I backdate the claim or will it be from when I call up?

Thanks

Skint_yet_Again

The rules for home working are here:

http://www.hmrc.gov.uk/incometax/relief-household.htm

If you qualify dont forget you only get tax relief on the amount claimed at the highest rate of tax you pay.

eg 12/13 £4 a week for a basic rate taxpayer will be tax saving of 0.80p per week

if you are a non taxpayer you get nothing as you pay no tax to claim relief on

if you are 40% taxpayer you get amount claimed x 40% etc etc

If your claim for expenses is less than £2500 you do not have to complete a self assessment tax return (unless you have another reason to complete one) see here:

http://www.hmrc.gov.uk/sa/need-tax-return.htm

You may need to check with your insurance company and the council tax if you are working from home to see if there are any implications

If you use a room soley as an office you may be liable to capital gains on that part when you sell. I dont know if this applies to employees as well you may need to contact HMRC to check:

http://www.hmrc.gov.uk/cgt/businesses/reliefs.htm#5


I dont know if this is everything you would need to consider, but this is all I could think of hope that helps

eta - you can claim as far back as 2008/9 if you qualify but bear in mind 2008/9 goes out of date on 5/4/13 so if you are going to claim for 08/9 you must do so by then

Pennywise

Can I also mention that there must be an obligation for you to work from home - you can't claim if you voluntarily work at home. The HMRC guidance says "if you have to work from home", so you need it written into your contract of employment or need some other kind of letter from your employer requiring you to work at home.