Tax Relief for Household Expenses – Update

If you have to work at or from home you can get tax relief for the extra household expenses that you have to pay. Typically these extra expenses include:

  • The extra cost of gas and electricity to heat and light your work area
  • Business telephone calls

You won’t be able to get relief on domestic expenses that you’re paying anyway – like your mortgage or council tax. You also won’t be able to get relief for expenses that relate to both business and private use – such as your telephone line rental, or Internet access.

How much relief you can get

From 2012-13 onwards, for payments of up to £4.00 per week, or £18 per month for monthly paid employees, you don’t need to provide any records of the household expenses you’re claiming relief for.

For amounts above £4.00 you will need supporting evidence to show that the amount you are claiming is no more than the additional household expenses you have actually incurred.

The guideline rate for 2008-09 to 2011-12 was £3.00 per week and for 2007-08 and earlier years it was £2.00 per week.

If you have any queries about tax relief for household expenses, please contact Helen Mackenzie on 0131 588 5800 or email