Working from home tax relief - office equipment purchases?

cjmerritt7

Hi, like many people this year I've been working from home throughout the Covid pandemic right from the start.  I'm aware of the £6 per week tax relief that can be claimed for unreceipted expenses, ie contributing towards home heating costs etc.  However, I'm wondering whether it is possible to claim for other related purchases, i.e. computer desk, chair and monitor that I bought over the summer - have all receipts to itemised if needed.  I bought this basic home office set-up to get away from the laptop on the coffee table whilst also considering ergonomic and display screen equipment regulations.

Anyone know if these can be claimed for?  I'd be happy to forgo the £6 per week relief as my family have largely been at home anyway during the day so it's not as if there were 'additional costs' incurred from the likes of extra heating or energy costs.  Should say that I'll be required to work from home through to 2021 or at least until the vaccine is fully rolled out which is when my employer has indicated that a return to the office for all personnel will be possible.  So in effect, having to set up the 'home office' due to being required to work from home for 12-18+ months.  I also have to do self assessment tax returns for other reasons in addition to my main salaried employment so either the £6/week relief and/or home office purchases/expenses would be declared on the self-assessment tax return.

Cheers....

sheramber

You'll find answers to that on the cutting tax thread.

cjmerritt7

sheramber, have just posted there also.  Thanks :-)

spiro

If you look on tghe government site where it tells you about the £6/week it also mentions other items and says you can't claim if they can also be used other than for working.

Jeremy535897

spiro said:

If you look on tghe government site where it tells you about the £6/week it also mentions other items and says you can't claim if they can also be used other than for working.

The legislation requires that employee expenses have to be incurred wholly, exclusively and necessarily for the purposes of the employment. There are more relaxed rules for some travel expenses, although commuting is not deductible.

There is no rule that says that you cannot claim capital allowances on an asset that is used partly for the employment and partly for personal reasons, but the hurdle set for claiming in the first place is high: you must need the asset to do the job, not just choose to have it because it makes doing the job easier. This then begs the question that if you must have the asset to do the job, why isn't the employer buying it.

cjmerritt7

Thanks all, think I'll just stick to the £6/week tax relief.  Seems there is a grey area over whether the purchases could be considered as essential, ie could not do my job without them - or chosen to buy for personal/comfort reasons working from home for a prolonged time.  Likewise, bought to use for working from home whilst being told to work from home by employer.  But once return to the office - say mid-2021, the desk/chair/screen would then be used for personal use, study and/or other family members and occasional work from home afterwards - not exclusive to one or the other.  For those that suggested the capital allowance, I'm not self-employed so have no business assets that the home office could be considered against.  I have main salaried employment taxed at source and only have to do self assessment for a small amount of rental income for a property I jointly own.  So having to claim via self-assessment rather than the HMRC microsite.  Cheers.     

Jeremy535897

cjmerritt7 said:

Thanks all, think I'll just stick to the £6/week tax relief.  Seems there is a grey area over whether the purchases could be considered as essential, ie could not do my job without them - or chosen to buy for personal/comfort reasons working from home for a prolonged time.  Likewise, bought to use for working from home whilst being told to work from home by employer.  But once return to the office - say mid-2021, the desk/chair/screen would then be used for personal use, study and/or other family members and occasional work from home afterwards - not exclusive to one or the other.  For those that suggested the capital allowance, I'm not self-employed so have no business assets that the home office could be considered against.  I have main salaried employment taxed at source and only have to do self assessment for a small amount of rental income for a property I jointly own.  So having to claim via self-assessment rather than the HMRC microsite.  Cheers.     

For the benefit of others, what you describe as a grey area is actually the rule: the first qualifies (assuming you are obliged by your employer to work from home), the second doesn't. Capital allowances apply whether you are employed or self employed, but with the distinction for the self employed that there is no "necessarily" requirement (which is logical as the only person involved in the purchase decision is the self employed person). If you were self employed, you could claim the business proportion of the cost of the furniture, but would have to treat it as sold at market value if you stopped using it for business.

Barny1979

Unfortunately OP lots of people have chosen to purchase home office equipment as a result, some have been lucky that their employer has purchased equipment for them.

unholyangel

cjmerritt7 said:

Thanks all, think I'll just stick to the £6/week tax relief.  Seems there is a grey area over whether the purchases could be considered as essential, ie could not do my job without them - or chosen to buy for personal/comfort reasons working from home for a prolonged time.  Likewise, bought to use for working from home whilst being told to work from home by employer.  But once return to the office - say mid-2021, the desk/chair/screen would then be used for personal use, study and/or other family members and occasional work from home afterwards - not exclusive to one or the other.  For those that suggested the capital allowance, I'm not self-employed so have no business assets that the home office could be considered against.  I have main salaried employment taxed at source and only have to do self assessment for a small amount of rental income for a property I jointly own.  So having to claim via self-assessment rather than the HMRC microsite.  Cheers.     

The test is that it needs to be necessarily incurred in the performance of your duties, not just whether you need them to do your job. 

Equipment like chairs and desks are generally a cost incurred to put you into the position of being able to do your job, rather than a cost incurred  in performing the duties of your employment. 

[Deleted User]

cjmerritt7 said:

Thanks all, think I'll just stick to the £6/week tax relief.  Seems there is a grey area over whether the purchases could be considered as essential, ie could not do my job without them - or chosen to buy for personal/comfort reasons working from home for a prolonged time.  Likewise, bought to use for working from home whilst being told to work from home by employer.  But once return to the office - say mid-2021, the desk/chair/screen would then be used for personal use, study and/or other family members and occasional work from home afterwards - not exclusive to one or the other.  For those that suggested the capital allowance, I'm not self-employed so have no business assets that the home office could be considered against.  I have main salaried employment taxed at source and only have to do self assessment for a small amount of rental income for a property I jointly own.  So having to claim via self-assessment rather than the HMRC microsite.  Cheers.     

“Tax relief of £6 a week equates to a gain of £1.20 a week for a basic 20% rate taxpayer, £2.40 a week for a higher 40% rate taxpayer.”

wk0101

I’ve recently tried to claim for a mouse and headset for my work laptop/phone, I don’t use them for any other purpose, however my claim has been rejected by HMRC.  They’ve specified that my claim doesn’t meet all of the conditions:
The expense must be…
one that each and every employee would have to incur in that employment
necessary for you to incur the expense
incurred and paid
incurred wholly and exclusively as part of the duties of the employment

If I don’t agree with HMRC’s decision I would need to complete a self assessment form…

I’m guessing that my husbands claim for the screen he needs to do his job will be rejected as well.  And it doesn’t sound like I’d have much success claiming for the new desk and chair I need following a DSE assessment which my company is reluctant to pay for.  Is it worth me trying to claim?