Working from home expenses

tillboyuk

Getting everything together ready for my tax return, just looking at what I can claim for working from home expenses. I'm employed on PAYE. Initially I worked remotely due to the distance from my employer, they've now gone one step further and closed the UK office so everyone is now working remotely.

My workspace consists of a converted shipping container which I use as office and workspace, this is rented am I able to offset any of this cost against my tax liability? I use a smart switch to direct all the power to the container so I have accurately logged all the power used for my office space - I believe this is also offset-able? 

Any pointers?

TIA

Jeremy535897

https://www.gov.uk/tax-relief-for-employees/working-at-home

tillboyuk

Jeremy535897 said:

That's where I started, unfortunately it seems fairly vague. 

DE_612183

£6 a week you can claim

elsien

Is your  employer not paying you any homeworking expenses now that they’ve closed the office? Because if they are, I don’t think you can claim anything else on top.

Bookworm105

If your employer is now paying you an additional £6 per week (£26 per calendar month) then you cannot claim extra.

if your employer is paying you more than £6/26 then it is your responsibility to keep records justifying the amount paid (which your employer should have checked anyway) 

If your employer pays you nothing.....
- from the closure of the UK office you de facto qualify for working from home costs
- was the shipping container already there and you converted it for use? 
- is the shipping container rental something you started solely because of the home working?
- is the shipping container used "wholly, exclusively and necessarily" for work purposes? Is any area of it used by you, wife, children for other purposes (domestic storage, play area, garden room)?

depending on your answers, then in theory the container rent is a discrete additional cost that could be claimed.
The additional utility costs can be separately quantified and so could be claimed. 

the technical guidance is here
EIM32760 - Other expenses: home: working from home - HMRC internal manual - GOV.UK (www.gov.uk)

Remember these are costs that reduce your income for tax purposes, you will reduce your tax bill, you will not be paid the gross cost of the bills

Bookworm105

example 10 on EIM 32790 covers a UK employee of a company with no UK base
EIM32790 - Other expenses: home: working from home: examples - HMRC internal manual - GOV.UK (www.gov.uk)

EIM 32810 references to info on what costs can, and cannot, be claimed 
EIM32810 - Other expenses: home: household expenses - HMRC internal manual - GOV.UK (www.gov.uk)

PS be careful with claiming for broadband - you need a separate dedicated business line, you cannot simply apportion if the household only has one line 

Bookworm105

PPS before the UK office closed you probably qualify for working from home but see for yourself re the examples given about "distance from the office" given your remark about the initial situation when they were in the UK