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August 03, 2020
HMRC (UK Tax Authority) Requires Separation Of Business vs. Personal For Work From Home Reimbursement

Working from home looks set to be a part of many people’s lives for some time to come. At the beginning of lockdown in March, employees would have been forgiven for thinking that their office moving to their spare room or kitchen table would be a temporary affair. The reality is that many will remain there until next year.

RBS announced that almost 50,000 workers will not go back into the office until 2021, even as the government urged employers to encourage their staff to return. While many people may have been able to deal with a few months at home, the prospect of many more to come throws up a series of questions for them and their bosses.


HMRC says that some of the cost of working from home may be eligible for tax relief, such as business phone calls or the gas and electricity for your work area. However, expenses that are used for both private and business use cannot be claimed for. Fill out a P87 form if they are less than £2,500 for the year. You will need records and receipts when filling it out.

If more, you will need to complete a self-assessment tax return. However, it can be difficult to apportion costs so you can, instead, claim tax relief on £6 a week. Or your employer is allowed to pay you £6 a week tax-free.


At the start of lockdown computer retailers reported a glut of orders as companies stocked up on laptops needed by staff to work from home. However, not all employers will agree to cover the cost, and many workers can find they have to foot the bill themselves for setting up a home office, or they have to use their own equipment. Conciliation service Acas says both sides should agree beforehand on how they should work and what equipment will be used.

HMRC (UK Tax Authority) Requires Separation Of Business vs. Personal For Work From Home

The Guardian’s Shan Hickey reported last week that HMRC has updated the tax legislation as it pertains to Work From Home Reimbursement.

The HMRC is saying explicitly that one must separate business from personal usage/cost and without that separation there can be no claiming the expense off your personal taxes.

They also go on to say that if there are expenses that have a dual use (personal and business) that the expense can’t be claimed.

Simple question will GBP 26 / month cover the cost of your : Smartphone Hardware, Smartphone Plan, Upgraded WiFi Router, Upgraded Home Internet Connection, Your PC?

It will not even cover the cost of the monthly hardware let alone the other items.

One assumes that if you can separate the business portion from the personal portion particularly for the smartphone hardware, the data usage, the calls, the smses, international calling, home internet connection, WiFi Router that you’d be able to justify your claim.

Our Work From Home Reimbursement Solution looks like it is a requirement to meet the substantiation and documentation requirements in the UK

Details on our Work From Home Reimbursement solution here :

HMRC (UK Tax Authority) Requires Separation Of Business vs. Personal For Work From Home Reimbursement