11

Since the Covid-19 lockdown started in March 2020, many in the UK have been forced to work from home. Is it possible to use rent as a tax deduction?

What does UK tax law say about this? Is there something similar to this US tax law ?

  • 2
    To be clear, you're still a fulltime salaried employee? Not "self-employed" ? – Fattie Oct 22 at 21:00
  • @ Fattie, yes I am a full time salaried employee – Medulla Oblongata Oct 23 at 5:59
28

You can't use rent as a tax deduction, after all you'd need somewhere to live whether you worked at home or not.

You can claim for additional costs if your employer has asked you to work from home though.

You may be able to claim tax relief for additional household costs if you have to work at home on a regular basis, either for all or part of the week. This includes if you have to work from home because of coronavirus (COVID-19).

You cannot claim tax relief if you choose to work from home.

Additional costs include things like heating, metered water bills, home contents insurance, business calls or a new broadband connection. They do not include costs that would stay the same whether you were working at home or in an office, such as mortgage interest, rent or council tax.

You can make this claim online via the UK government website

You can claim a flat rate without receipts or the exact amount if you have receipts for qualifying expenses.

| improve this answer | |
  • thanks for the detailed answer. I was wondering if you can only make a claim if you're a UK citizen or permanent resident. If my Australian colleague is working in the UK on a Tier 2 general visa, would he be eligible to apply? – Medulla Oblongata Oct 23 at 7:20
  • 2
    Generally taxation rules apply if you both live and work in the UK. It becomes more complicated if you're citizens of some countries like the US that tax you wherever you live though. Maybe you should ask a separate question, if so remember to provide the citizenship of your friend. – Robert Longson Oct 23 at 7:22
  • 2
    Note: as of the 20th of October, for this year only, if you were required to work at home for even one day, you are eligible to claim the flat rate for the full year: blog.moneysavingexpert.com/2020/04/… This is to make it easier than having to make multiple claims as we go in and out of lockdown. – Tim Oct 23 at 9:28
  • Hm, no provision to offset part of the rent for a dedicated "work room" (with the requirement that the room not be used as anything else)? – Simon Richter Oct 24 at 11:24

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.