Covid-19 Working From Home Tax Relief

3 Aug 2021

Six pounds a week tax might not sound like much. But over the course of a year, it will pay for a night out! Learn how to claim tax relief for working from home.

Introduction

  • Were you told to work from home by your company during the pandemic, and your employer has not reimbursed you any additional expenses?
  • Did you know you can claim tax relief from HMRC for the additional expenses incurred at home i.e. from the use of additional heating or electricity?
  • You are entitled to be paid £6 per week tax free from your employer.  All is not lost if they have not done this.  You can claim tax relief on £6 per week instead.  Receipts and evidence are not required but additional expenses do need to have been incurred.
  • If you believe these expenses total more than £6 per week, these can be claimed but receipts need to be provided and pro-rated to work use, therefore it may just be easier to claim the £6.
  • The relief works out as £1.20 a week for a 20% taxpayer, £2.40 for a 40% taxpayer and £2.70 for a 45% taxpayer.  It is worth £62 a year for a basic rate (20%) taxpayer.
  • If you are a couple and both worked from home, you can both claim the £6 per week tax relief.

Working at home from 23 March 2020 – 5 April 2021

  • You are entitled to claim for the 2 weeks from 23 March 2020 and for the whole of the 2020/2021 tax year (6 April 2020 to 5 April 2021) even if you only worked part time at home, or only for a day.  Please remember you need to have been asked to work from home by your employer, not because you chose to.
  • To claim this relief please go to HMRC’s microservice.
  • You will need to register for the Government Gateway and the refund will be issued by way of cheque or Bacs transfer.  Use 23 March 2020, as the start date if applicable.

Working at home from 6 April 2021 – 5 April 2022

  • You can also use the website above to claim for the current tax year, however the relief will be included in your tax code, therefore lowering the amount if tax you pay during the year.
  • You are entitled to claim for the whole year even if you were required to work from home for part of it.
  • If you have already claimed for 2020/21 then please go back and reclaim for the 2021/22 tax year.

If you submit a tax return

  • You cannot use the website above, instead please include this in the tax return for the applicable year in ‘other expenses and capital allowances’ in the employment section.