Working from home tax relief - self assessment tax return question

Emb94

Hello,

So my situation during the pandemic has meant, like many, that I've been working from home 99% of the time - I live with my parents so the increased electric, heating cost etc hits them, but wanted to claim it back for them.

My boss [from my full-time employment] mentioned there was working from home a tax relief in place last year and sent the link through to claim (this was back in November).

So when I was on the WFH tax relief page, it asked if you file a self assessment.
[I also freelance, and fill one for my income on that]
So then it says you should claim the 'relief' via expenses through your self assessment for the year.

Now my self assessment for the 20/21 year has come through I'm unsure where I can claim for this. 
- I assume it falls under the 'Other expenses and capital allowances:' section? 

The only thing is, it states 'the exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts' - https://www.gov.uk/tax-relief-for-employees/working-at-home 
- And as it's my parents house/bills I don't know how I go about this, as 1. they're not in my name, and 2. how they prove you've used more than previous years?

As if I wasn't self-employed too, I'd have gone through the original link without having to provide exact figures and would automatically be reimbursed the £4/£6 a week ike my colleagues were able to do so. - '£6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) - you will not need to keep evidence of your extra costs'.
- So can I put my expenses in my SE as £4/6 x 52/no weeks I was WFH? and without showing any evidence?

Why they can't just add a tick box in for these employments that asks 'Were you asked to work from home during period 20/21 under this employment?' - seems like it would have been easier to claim a basic rate back, if you've not necessarily used/lost more than the £208 you'd be able to claim otherwise! 

QrizB

Emb94 said:

The only thing is, it states 'the exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts' - https://www.gov.uk/tax-relief-for-employees/working-at-home

It says:

You can either claim tax relief on:

• £6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) - you will not need to keep evidence of your extra costs
• the exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts

So if you are happy claiming £6 a week, you don't need receipts, just claim it.

I'm employed but have other income so need to fill in a Self Assessment return, so I'll be doing this myself this year.

Jeremy535897

If you are claiming WFH expenses because your employer requires you to work from home and you incur additional costs as a result, you can claim £6 a week for the whole of 2021/22. See:
https://www.gov.uk/tax-relief-for-employees/working-at-home

You can't use the link though because, as you are self employed, you complete a self assessment tax return. When you complete that return, you will complete SA102 "employment", and your claim is entered in box 20 on page E1.

Those who work from home may also claim round sum allowances for costs they incur, depending on the hours they work while at home. See:
https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home

If it costs you nothing personally to work from home, in my opinion the claims are invalid, but I know others take a different view. The issue is solved if you pay something to your parents.

sheramber

You claim on your self assessment tax return but on the employment pages of that return, not on your self employment pages.

Emb94

QrizB said:

Emb94 said:

The only thing is, it states 'the exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts' - https://www.gov.uk/tax-relief-for-employees/working-at-home

It says:

You can either claim tax relief on:

• £6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) - you will not need to keep evidence of your extra costs
• the exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts

So if you are happy claiming £6 a week, you don't need receipts, just claim it.

I'm employed but have other income so need to fill in a Self Assessment return, so I'll be doing this myself this year.

I can't claim through the link as I fill in a self assessment also. I'm employed full-time [and asked to WFH by this employer] and I also freelance [and fill a self assessment for this].
The rest of my post explains my queries regarding this issue as I'll have to go through my self assessment.

I go to my full-time employment section on the self-assessment where I declare my earning from them for the year, and then to the 'Other expenses and allowances' section.
But is this where I add the expense/relief sum? - eg should I just put £208 in there that I'd have been able to claim if I were able to claim through the link? as I live at home with parents, all bills are in there name etc, and I don't know how much extra gas, electric I'd have used in a normal year to compare in order to claim back the specifics etc...

This is why I'm confused. 

Emb94

sheramber said:

You claim on your self assessment tax return but on the employment pages of that return, not on your self employment pages.

Yes I know that but, I go to my full-time employment section on the self-assessment where I declare my earning from them for the year, and then to the 'Other expenses and allowances' section.
and this where I add the expense/relief sum? - eg should I just put £208 in there that I'd have been able to claim if I were able to claim through the link? as I live at home with parents, all bills are in there name etc, and I don't know how much extra gas, electric I'd have used in a normal year to compare in order to claim back the specifics etc...

Emb94

Jeremy535897 said:

If you are claiming WFH expenses because your employer requires you to work from home and you incur additional costs as a result, you can claim £6 a week for the whole of 2021/22. See:
https://www.gov.uk/tax-relief-for-employees/working-at-home

You can't use the link though because, as you are self employed, you complete a self assessment tax return. When you complete that return, you will complete SA102 "employment", and your claim is entered in box 20 on page E1.

Those who work from home may also claim round sum allowances for costs they incur, depending on the hours they work while at home. See:
https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home

If it costs you nothing personally to work from home, in my opinion the claims are invalid, but I know others take a different view. The issue is solved if you pay something to your parents.

Thanks for this, I'll take a read.

I do pay my parents a contribution every month. But during the pandemic and WFH has meant costs have gone up, so would like to claim to account for this. 

If I was able to go through the original link I'd have been able to claim £208/£312 without any issues or proof. - just like my colleagues were able to do.
But because I'm forced to claim through my self-assessment, means that I now need to show proof of bills etc instead of being able to claim a flat fee? just seems a little odd not to just add a tick box to claim a flat fee to the form. 

QrizB

Emb94 said:

I go to my full-time employment section on the self-assessment where I declare my earning from them for the year, and then to the 'Other expenses and allowances' section.
But is this where I add the expense/relief sum? - eg should I just put £208 in there that I'd have been able to claim if I were able to claim through the link? as I live at home with parents, all bills are in there name etc, and I don't know how much extra gas, electric I'd have used in a normal year to compare in order to claim back the specifics etc...

This is why I'm confused. 

Yes, put £208 or £312 as applicable in that box and you're done. No need for receipts, bills or any of that.

If you want to claim more than £208 or £312, then you will need evidence.

sheramber

You do not need to show proof if you are only claiming the fixed rate allowance.

Jeremy535897

As I said earlier:

You can't use the link though because, as you are self employed, you complete a self assessment tax return. When you complete that return, you will complete SA102 "employment", and your claim is entered in box 20 on page E1. You don't need evidence if you claim £6 a week in 2020/21 and 2021/22.

unholyangel

Jeremy535897 said:

If you are claiming WFH expenses because your employer requires you to work from home and you incur additional costs as a result, you can claim £6 a week for the whole of 2021/22. See:
https://www.gov.uk/tax-relief-for-employees/working-at-home

You can't use the link though because, as you are self employed, you complete a self assessment tax return. When you complete that return, you will complete SA102 "employment", and your claim is entered in box 20 on page E1.

Those who work from home may also claim round sum allowances for costs they incur, depending on the hours they work while at home. See:
https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home

If it costs you nothing personally to work from home, in my opinion the claims are invalid, but I know others take a different view. The issue is solved if you pay something to your parents.

Arguably, those people know nothing of the rules if they're taking a different view. We don't always agree 100% on things, but it would appear we do on this. 

S336 states a deduction is only allowable if the employee is obliged to incur and pay it (and it's incurred wholly, exclusively and necessarily in performance of duties). If employee is not paying it then it's not allowable, and the person paying it isn't entitled as they're not the employment holder. 

The courts have said over and over how the test is a restrictive one (which is why it needs to be incurred actually performing the duties rather than in connection with the duties). Even so, I don't see any way of interpreting "obliged to incur and pay" as "not paying anything but still entitled".