New claims for working from home tax relief
Jun 09, 2021
If you’ve been working from home due to the pandemic, you’re eligible to claim tax relief on your expenses. HMRC received more than three million claims for this tax relief for the 2020/21 tax year.
The working from home allowance is up to £6 per week, or £26 per month, paid tax-free to cover costs such as heating, lighting and business calls which may be incurred as a result of working from home.
Many employers pay this tax-free allowance directly to their employees who are required to work from home due to Covid-19 restrictions. However if your employer doesn’t reimburse your costs, then you can also claim the tax relief yourself.
It’s worth noting that if you have already made a claim for the 2020/21 tax year then this won’t automatically be rolled forward. So if you’ve continued working from home, you’ll need to make a new claim for the 2021/22 tax year.
Working from home part-time
If you now only work from home part-time, and split your time between home and your workplace, then the allowance is still available in full. You don’t need to pro-rata your days spent working from home, and nor do you have to tell HMRC if you return to your workplace full time – so the relief can apply to the whole of the tax year.
If you were working from home during the 2020/21 tax year but didn’t claim for the tax relief, this doesn’t mean that you’ve missed out on the allowance. You can still apply and HMRC will back-date your claim for up to four years, meaning you’ll receive a lump sum for any successful claims.
Making a claim
You can check if you’re eligible and make a claim via HMRC’s online portal. Once your application has been approved, your tax code will be adjusted for the 2021/22 tax year and you’ll receive the tax relief directly through your salary until March 2022.
Be aware that you will have to apply for the relief yourself as an individual taxpayer, and as accountants we won’t be able to apply on your behalf. However if you have any queries please get in touch and we’ll be happy to help.