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Writer's pictureLewis Chapman

Stricter rules for use of home claims

Updated: Feb 23

To discourage claims HMRC are introducing stricter rules and more compulsory boxes in relevant forms used for employment expenses.

New rules
Terms and Conditions

Form P87 has been broadly used to claim for expenses whilst working from home. The Covid-19 pandemic gave rise to the use of the flat-rate deduction of £6 a week due to the number of employees that were required to work from home.


During the pandemic, HMRC would not require an employee to offer proof of any expenses that were sustained by their requirement to work from home. This was in order to help with claims for the tax years 2020/2021 and 2021/2022.


However, HMRC's relaxed views seem to be coming to a close. From April 2022, the necessary terms to claim the flat rate deduction are being changed to a level similar to the pre-pandemic conditions. An employee can only claim the deduction if:

  • the employee is required to work from home by their employer

  • the employee has no choice about whether they work at home or not

  • substantial duties of the employee are performed at the employee's home

  • there is no option to perform substantial duties at the employers premises

If all 4 terms are met, an employee can claim the £6 weekly deduction provided that the employer is not paying a working-from-home allowance.


As long as an employee can show that working from home is incurring extra costs that are greater than £6 a week, they are able to claim the actual costs, provided they keep the evidence. Considering the current cost of living and how high bills will be this winter, an employee working from home may well incur costs greater than £6 a week.


A self-employed individual can use the simplified expenses to work out their use of home flat rate per month:

Hours of business use per month

Flat rate per month

25 - 50

£10

51 - 100

£18

100 +

£26

We hope this article was helpful, Short and Sons Accountants are always available if you have any questions regarding your Self-Assessment, new rules or general tax queries; contact us today to see if we can help you.

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