Setting up working from home
Tempted by a better work-life balance? Working from home – as millions of people are doing – could be the answer. To get you off to a flying start, we explain the insurance you might need, the tax implications and the best ways to make your home-office experience as positive and productive as possible.
Tempted by a better work-life balance? Working from home – as millions of people are doing – could be the answer. To get you off to a flying start, we explain the insurance you might need, the tax implications and the best ways to make your home-office experience as positive and productive as possible.
60 second summaryThinking of working from home? Here are some quick tips to get you started:
|
Should I work from home?
According to government figures for 2023, around 44% of Brits reported working from home at least part of the time. So, if you’re not already doing it, should you join them?
To make your decision, you’ll need to think about:
- The industry you work in and your job role
- Your employment status – for example, self-employed or employee
- The policies of your employer/manager, if you have one
- Your own preferences, unless working from home is a company policy and you must do it.
Advantages of working from home
Working from home can bring considerable benefits, including:
- Increased job satisfaction
- More independence
- No commute, saving time and money
- Increased productivity thanks to less distractions
- A healthier work-life balance.
Disadvantages of working from home
However, there are some downsides to home working too, including:
- Remote communication can be more challenging
- You may need to be more self-motivated and focused
- You might feel isolated or ‘out of the loop’
- It may affect your career progression
- The line between work and home can become blurred, meaning that you don’t fully switch off out of working hours.
The secret to making your working experience both productive and positive may be hybrid working, where you split your time between working from home and in your workplace.
Does my employer have to let me work from home?
You don’t have an automatic right to work from home. But you do have the right to request flexible working – which may include working from home. Your employer can refuse your request if they have a good business reason for doing so though.
The Employment Rights Bill, currently going through Parliament, includes a measure under which an employer will only be able to refuse a flexible working request if it’s reasonable for them to do so.
Do I need to tell my home insurance provider if I’m working from home?
Yes. If you don’t tell your home insurance provider, you could invalidate your policy.
There are three different classifications of home working, and you’ll need to make sure your home insurance policy covers the right one.
- Clerical business use – for example, office work, admin or accounts on a laptop.
- Business use with visitors – which is seen by many insurance providers as making your home and contents a higher risk. In this case, you may also want to think about public liability insurance.
- Other business use – when you keep business stock or product samples at your house, which may be seen as an increased fire, theft or liability risk.
You may also find that your premiums change depending on the equipment you use and whether you have visitors to your property. Working from home could even have a positive effect on your premium, as your home won’t often be unoccupied.
Am I insured by my employer for home working?
Employers’ liability cover is a legal requirement for businesses with one or more employees. It should provide some cover for staff working from home. Exactly what’s covered will depend on the policy and individual circumstances of a claim.
If you’re running a business yourself, read our guide to insurance if you work from home to make sure you have the right cover for you and your team.
Does my contents insurance cover work equipment?
It depends on who owns it. Equipment on loan from your employer might be outside the terms of your contents insurance policy.
If the company you work for owns your equipment, they’ll have to check with their insurance provider that the equipment in your home is covered.
If you own the equipment you use for work, you need to check that your home insurance covers items used for business.
Also check that the value of your equipment – your laptop, for example – falls under the amount your policy will pay out for a single item. If it doesn’t, you’ll need to list your valuable work items separately on your policy to make sure they’re fully covered.
You should also make sure that your equipment will still be protected if you need to take it outside the home.
What are my employer’s responsibilities?
By law, your employer is responsible for the health and safety of all their employees, even when they’re working from home.
Your employer should carry out a risk assessment of your workplace. If they can’t do this, they should provide you with information on working safely from home.
Making sure you can work safely may involve buying you new home-office equipment or lending you some but, either way, they’re responsible for making sure you can work at home in a safe and healthy way.
There’s also a lot you can do to stay healthy. Make sure you have a desk and chair set-up that supports good posture, and suitable lighting to reduce headaches and eyestrain. Natural light can positively impact your mood and wellbeing so, if you can, choose a spot for your home workspace that has some.
The government's Health and Safety Executive website has created a helpful guide to make sure you’re ticking the right boxes when it comes to getting your posture right.
Can I claim tax relief for working from home?
If working from home is a must-do rather than a personal choice, as an employee you may be able to claim tax relief on your household expenses.
These include:
- Gas and electricity
- Business phone calls.
You can’t claim for the whole bill, just the work-related part. The tax relief you get is based on your tax bracket. For example, if you pay the basic 20% tax and claim tax relief on £10 per week, you’ll get £2 back (20% of £10).
If you’re setting up working from home, this is also a great time to check whether you can save money on your energy bills by switching to a different provider.
You may also be able to claim tax relief on any equipment you buy that makes working from home possible, up to the full value of the item. This could be a computer, desk or office chair.
However, this only applies if:
- You can’t do your job without this equipment
- It’s not for personal use
- You bought the item specifically for work and didn’t already own it.
If your employer gave you money to buy the equipment, you can only claim tax relief on whatever you spend above and beyond that amount.
Visit GOV.UK to find out if you’re eligible to make a claim. If you are, make sure you always keep a record of your expenses, along with any invoices or receipts.
What broadband speed will I need to work from home?
It depends on what you’re doing, how quickly you want to do it and how many other people in your home are online at the same time.
If you’re using video meeting software like Zoom, you’re looking at recommended upload speeds of up to 3.8 Mbps for HD-quality, one-to-one video calls.
For one to two people working from home, download speeds of 25 Mbps are recommended.
If you’ve noticed that your broadband connection has started to struggle or isn’t as fast as it should be, you may want to review your broadband package and upgrade it.
Or, if your contract is coming to an end, switch broadband provider.
How do I make the most of working from home
It helps if you treat it like working from your office. It’s best to get properly dressed, keep regular hours, allow yourself breaks and exercise outside.
To help you enjoy the perks of working from home and avoid the pitfalls, read the NHS’ 6 simple tips to tackle working from home.
