The tax office has warned remote workers to be cautious when claiming tax relief, as they could face a large repayment bill. In certain cases, those who work from home can claim tax relief from HM Revenue and Customs (HMRC) to cover additional household expenses. However, there are strict eligibility requirements that must be met.

Adverts have been circulating from tax refund companies offering to submit work-related expense claims on individuals' behalf, usually for a commission. HMRC is reminding taxpayers that if a claim is made incorrectly - even by an agent - the individual, not the agent, will be held responsible for repaying any money owed. In a new post on X, HMRC wrote: “Don't get caught out by ads promising quick tax refunds for working from home. Always check if you're eligible before making a claim. Avoid agent fees by claiming directly with HMRC.”

Work-from-home tax relief rules

According to HMRC, people may be able to claim tax relief for working from home if:

• Their job requires them to live far away from their office
• Their employer does not have an office.

If this applies, people can only claim for things to do with their work, such as business phone calls, and gas and electricity for their work area.

However, people can’t claim for things they use for both private and business use, such as rent or broadband access.

Claims can be made for this tax year and the previous four tax years.

People can claim tax relief on £6 a week or the exact amount they’ve spent. They’ll get tax relief based on the rate at which they pay tax. For example, if a person pays the 20% basic rate of tax and claims tax relief on £6 a week, they would get £1.20 per week in tax relief (20% of £6).

Who can’t claim tax relief on working from home?

People cannot claim tax relief if they choose to work from home. This includes if:

• Their employment contract lets them work from home some or all of the time
• Their employer has an office, but they cannot go there sometimes because it’s full.

HMRC added: “Eligibility for the ‘working from home’ relief changed after the end of the COVID-19 pandemic. Just because you were eligible to claim back then, don’t assume you’re still eligible.”

People can use the Government tool to check if they’re eligible to claim a tax refund.