Self-assessment tax return deadline: How remote workers can claim up to £140 from HMRC

As the self-assessment tax return deadline looms due on January 31, individuals working from home in the UK have a financial opportunity that could see them claim up to £140 from HM Revenue and Customs (HMRC). This week marks the final chance for eligible workers to submit a claim for tax relief, which could result in a significant return based on their individual circumstances.

For those required to work from home, there exists a provision to claim back £6 a week, an amount that can be incorporated into their tax return. The UK’s Labour Party government has highlighted that tax relief is available for additional household costs incurred as a result of working from home, stating, "You may be able to claim tax relief for additional household costs if you have to work at home for all or part of the week."

Eligibility for this relief hinges on certain conditions. Workers can claim tax relief if their situation necessitates working from home either due to their job’s nature—such as being based far from an office—or if their employer lacks a physical office. However, it is crucial to note that claims cannot be made simply because an individual opts to work from home voluntarily. The government’s guidelines clarify that claims are valid in cases where the employment contract permits remote work or when an office cannot be accessed due to capacity issues.

Moreover, workers are advised that only specific expenses can be claimed, such as costs attributed to business phone calls and utilities for the work area. Claims cannot include general expenses used for both professional and personal purposes, like rent or broadband access. The amount of tax relief received corresponds directly to the current income tax rate of the individual. For example, a worker paying a tax rate of 20% claiming the full £6 weekly relief would receive £1.20 back, while those taxed at 40% would see a return of £2.40 weekly and those at 45% would get £2.70.

With the impending deadline, HMRC has urged workers to take action if they qualify for this relief, allowing them to maximise their financial returns while navigating the complexities of remote working arrangements.