Working from home? Customers may be eligible to claim tax relief in 2021/22

HM Revenue and Customs (HMRC) is accepting tax relief claims for working from home due to coronavirus during 2021/22. More than 550,000 employed workers have already claimed and are benefitting from the tax relief.

If employed workers were told to work at home by their employer because of coronavirus and, as a result, their household costs have increased, they are eligible to claim the working from home tax relief. It is quick and easy to claim via HMRC’s online portal.

HMRC received more than three million claims for the tax relief for the 2020/21 tax year.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

“Half a million people have already reduced their Income Tax this year by up to £125, by claiming tax relief on their working from home expenses.

“We want everyone who’s eligible to benefit, so we’ve made it quick and easy to do online. Check if you’re eligible and apply at GOV.UK by searching ‘working from home tax relief’.

“HMRC is continuing to help and support people affected by the pandemic.”

From 6 April 2020, the amount employers have been able to pay tax-free without employees having to provide evidence of an increased bill is up to £6 a week. Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

Eligible customers can claim tax relief based on the rate at which they pay tax. For example, if an employed worker pays the 20% basic rate of tax and claims tax relief on £6 a week, they would receive £1.20 a week in tax relief (20% of £6 a week) towards the cost of their household bills. Higher rate taxpayers would receive £2.40 a week (40% of £6 a week). Over the course of the year, this could mean customers can reduce the tax they pay by £62.40 or £124.80 respectively.

Taxpayers can check if they are eligible via GOV.UK.

To claim for tax relief for working from home, employees can apply directly via GOV.UK for free. Once their application has been approved, the online portal will adjust their tax code for the 2021/22 tax year. They will receive the tax relief directly through their salary until March 2022.

If employees were required to work from home last year but did not claim for the tax relief, they have not missed out; HMRC will accept backdated claims for up to four years. They will receive a lump sum payment for any successful backdated claims.

Using the GOV.UK service is quick and free, and customers will receive 100% of the tax relief that is due. Agents will not be able to use the online portal to apply for the relief on a customer’s behalf.

Notes to Editors

1. The number of claims made in 2021/22 is 558,764, as at 9 May 2021, and refers to online portal claims only.

2. Find out more about claiming tax relief on work related expenses

3. The online portal for working from home expenses is: https://www.gov.uk/tax-relief-for-employees/working-at-home

4. Since 6 April 2003, employers have been able to make tax free payments to meet or reimburse additional household costs to employees who work at home under homeworking arrangements.

5. Employees do not need to provide evidence to show their bills have increased unless they are applying for tax relief on costs above the £6 per week flat rate; then evidence of the increased costs may be required.

6. Employees will receive the tax relief that corresponds with the Income Tax rate that they pay. For example, it will differ in Scotland.

7. If an employed worker completes an annual tax return, they should apply for the tax relief via their Self Assessment.

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