With the increase in flexible and hybrid working patterns across the UK, many employees and self-employed individuals have taken advantage of the option to work from home. However, HMRC has launched a public information campaign to warn against incorrect or misleading claims for work-from-home expenses — and the message is clear: “Don’t get caught out.”
What Is the HMRC Warning About?
The campaign, launched via gov.uk’s official portal, highlights a growing issue: incorrect expense claims related to home offices, broadband, and household bills. Many are either misinformed or being misled by promoters or tax repayment agents encouraging them to submit claims they aren’t legally entitled to.
This proactive initiative by HMRC aims to protect taxpayers from potential penalties, tax repayment issues, or even fraud investigations.
What You Can and Cannot Claim
Here’s a clear breakdown to help you stay compliant with HMRC guidelines:
You Can Claim:
- Employees working from home due to employer requirements may be able to claim:
- A £6 per week allowance (or £26 per month) without needing receipts.
- Actual expenses (with receipts) for increased gas, electricity, and metered water use.
- A £6 per week allowance (or £26 per month) without needing receipts.
- Self-employed individuals can claim:
- A proportional share of home expenses (e.g., heating, broadband) based on business usage.
- Capital allowances on equipment exclusively used for business.
- A proportional share of home expenses (e.g., heating, broadband) based on business usage.
You Cannot Claim:
- Costs for broadband or phone lines already used personally.
- Deductions for rooms used as dual purpose (e.g., a bedroom or kitchen).
- Claims if you chose to work from home voluntarily (not at your employer’s request).
Watch Out for Tax Repayment Scams
HMRC also warns against companies that promise large refunds for expense claims in exchange for a commission. These “repayment agents” may submit inaccurate claims, putting you at risk of:
- Paying back HMRC with interest and penalties.
- Being part of a fraudulent tax scheme unknowingly.
Always read the small print, especially when authorizing someone to act on your behalf through a Deed of Assignment or Agent Authority.
Expert Advice from Walden Way & Co
At Walden Way & Co, we stand with HMRC’s initiative to educate and protect UK taxpayers. If you’re unsure about your eligibility for work-from-home tax relief or want help filing legitimate claims, our chartered accountants are here to help.
We can:
- Assess your work-from-home situation accurately.
- File compliant tax returns.
- Advise on allowable business expenses and capital allowances.
- Ensure you’re never caught out by misleading schemes or incorrect claims.
Stay Safe. Stay Informed. Stay Compliant.
Tax rules can be complex — especially as flexible working becomes more common. HMRC’s message is simple: Only claim what you’re entitled to.
For tailored tax advice or support with your self-assessment and expense claims, contact Walden Way & Co today.
Get in touch with us today for a free consultation.
Visit us at https://www.waldenway.co.uk
Email: info@waldenway.co.uk
Phone: 0203 4411 205
