The tax office is urging people who work from home to be wary of claiming relief, as they could end up footing a hefty bill.

In some instances, people working from home can claim tax relief from HM Revenue and Customs (HMRC) for extra household costs. However, strict criteria must be adhered to in order to qualify.

Adverts have been circulating for tax refund companies offering to make work expense claims on behalf of individuals, often in exchange for a commission. However, HMRC is warning that if you’re not eligible for a claim, you’ll still be responsible for any claims made on your behalf, even if they were submitted by an agent.

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.”

Who can claim tax relief on working from home?

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

• Your job requires you to live far away from your office
• Your 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
• 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.

You can claim tax relief on £6 a week or the exact amount you’ve spent. You’ll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week, you 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 tax relief.