Working from home

glynb

Hi,
The wife works from home full time (she works as an employee for a telecommunications company). She was allowed to work at home having come to a mutual agreement with her employer due to child care commitments and has been doing so since 2009.

I believe she is entitled to claim something from the tax people but we are not sure what and how do we calculate (and give proof) of the gas and electric we use during the daytime?

Someone has mentioned she maybe able to claim for office space too?

Any help would be appreciated

Thanks!

Glyn

Laurajo_2

The hmrc accepted amount is £4 per week. This amounts to £204 pa, a tax saving of around £40 if she is a basic rate taxpayer. She doesn't need to keep records for this amount.

However, this relies on her being contractually required to work from home rather than on a voluntary basis, so check this out first. It's possible that it may fall under a home working arrangement, which she wouldn't be able to claim for:

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

Alternatively she can calculate the extra cost of light and heat - you can do this anyway you think is reasonable, however hmrc can challenge it. A common method is to take the whole amount for the year, apportion it base don't he square footage or number of rooms, and apportion it again for the hours spent working. You should keep copies of all bills and records of the time your wife spends working.

nephilim

Question for heating/lighting. Are you on a pre-payment meter or a direct debit payment? The latter is easier to see consumption of energy, and therefore work out costs on the room.

Also, I believe a small portion of internet/phone usage is also covered. Best to check direct with the hmrc however

PlutoinCapricorn

The rules are different for employees on PAYE and self employed people: the latter can claim more.

If your wife is an employee and the contract of employment gives her home address as the main place of employment, then she can get the flat rate, no questions asked, £4 per week.

If you think this does not nearly cover the extra expenses, you can claim more but must be able to provide evidence.

If she is allowed to work from home as a favour, she can't claim anything.

glynb

Thank you for the replies guys, most helpful.