HMRC has issued a warning to people working from home following an increase in misleading and fraudulent refund claims submitted by some tax agents. These firms often promote “quick refunds” online, persuade people to sign documents they haven’t read, or submit claims without checking whether the employee is genuinely eligible.
In many cases, they take a significant commission from any refund – and leave the taxpayer responsible if HMRC later challenges the claim.
Warning signs to watch for
HMRC highlights several red flags that should prompt caution:
- Being asked to sign a blank tax return
- Requests for your Government Gateway login details
- Claims that an adviser is “approved” or “endorsed” by HMRC
- Pressure to submit a claim quickly without reviewing the details
A reputable tax agent will explain the basis of any claim, ask for supporting information, and give you the chance to review everything before it is submitted.
Before using a tax agent
HMRC advises employees to:
- Check the agent’s background and experience – look for firms with a track record of handling personal tax compliance.
- Read the terms carefully – some agreements give the agent long-term rights over your refunds.
- Understand the fees – high-volume refund firms often take a percentage of any repayment.
- Be aware that you remain responsible for the accuracy of any claim, even if an agent submits it on your behalf.
Work-from-Home Tax Relief: What You Can Claim
You can only claim tax relief for working-from-home expenses if your employer contractually requires you to work from home – for example, if there is no office space available or it is not practical for you to work onsite.
You can claim for:
- Business-related phone calls
- Additional energy costs for your workspace
- A proportion of rent or mortgage interest in certain limited circumstances.
You cannot claim for:
- Broadband used for personal purposes
- General household costs
If in doubt, it is important to check the rules before submitting a claim. HMRC may challenge claims that do not meet the eligibility criteria.
How Beavis Morgan Can Help
Tax relief rules for home working can be confusing, particularly as HMRC increases scrutiny of refund claims. Our Personal Tax team can support you by:
- Reviewing your situation to confirm what you can legitimately claim
- Preparing and submitting accurate, compliant tax returns
- Correcting issues caused by incorrect historic claims
- Managing communications with HMRC on your behalf
- Helping you plan ahead so your tax affairs stay efficient and up to date
For guidance tailored to your circumstances, please contact Neal Groves or Joanne Holland in our Personal Tax team.
