During the lockdowns of 2020-2021, a number of people were asked to work from home. The Working From Home Rules on Tax Relief were relaxed to cover additional energy and other household costs encountered by working from home. The rules for working from home tax relief have evolved now that people are back to working from the office but you can still claim for the covid-years and may still be eligible for relief today.
This is what you need to know about working from home tax relief, how to make a backdated claim for working from home during lockdowns, and who can claim the relief today.
Working from home tax relief – claim for 2020-2021 and 2021-2022 tax years
If you were working from home during lockdowns, you can claim from-home tax relief. This could be as much as £140 per tax year to cover gas, electricity and internet bills which were likely to have increased as a result of you spending more time at home.
If you were at home during the 2020-2021 and 2021-2022 tax years but failed to apply for the rebate, you can make a backdated claim for up to four years, even if you are back in the office or no longer eligible under the new rules.
- Deadline to claim for the 2020/21 tax year working from home tax relief – 5th April 2025
- Deadline to claim for the 2021/22 tax year working from home tax relief – 5th April 2026
How to claim working from home tax relief
Visit the government microservice portal and answer the eligibility questions. You need your Government Gateway ID to proceed with your application – if you don’t have one, you can create one during the process and will need your national insurance number and either a recent payslip or P60 or a valid UK passport.
Once logged in, state the date that you started working from home. If you worked at home since the start of the first lockdown (23rd March 2020) put that date in and you will get a rebate for two whole tax years (6th April 2020 – 5th April 2021 and 6th April 2021 to 5th April 2022) plus two weeks extra.
Bear in mind that there may be other work-related expenses that can also be claimed
If you submit a self-assessment, you won’t be able to use HMRC’s online portal; instead apply for the tax relief in your tax return.
Who is eligible for from-home tax relief today?
In April 2022, the tax relief changed so that someone can only claim relief if someone had to work from home, such as if they worked for a company that wasn’t office based, or their job required them to live far away from the office. Also, they cannot be receiving expenses directly from their employer to cover the extra costs of working from home. Someone cannot claim tax relief if they choose to work from home even if:
- the employment contract is flexible and allows them to work from home some or all of the time
- they work from home because of coronavirus (COVID-19)
- their employer has an office, but they cannot work from there because there’s no room
If eligible, someone can only claim tax relief for things that directly help the job such as:
- Gas and electricity
- Metered water
- Business phone calls
- Internet access for work use
- Equipment used exclusively for work such as a desk, chair etc.
The amount claimed depends on income tax rates.
- Basic rate taxpayer (20%) – Claim £1.20 per week or £62.40 per tax year
- Higher rate taxpayer (40%) – Claim £2.40 per week or £124.80 per tax year
- Additional rate taxpayer (45%) – Claim £2.70 per week or £140.40 per tax year
Alternatively, the amount spent on work-related costs can be claimed in full as long as it is backed by evidence such as receipts, bills or contracts.
How can we help?
The HB team is always available to support your accountancy needs including what tax reliefs are available to you and how to claim them. We will complete your personal and company tax returns as well as discuss ways to boost your productivity.
If you would like to learn more about the services that we offer, discover how we can give you real confidence in the future of your business, or if you are a larger business that requires auditing, then contact us today. We’re accountants for business and we are here to help you grow efficiently.
Please feel free to contact the team on 01992 444466. We’re accountants for business and we’re here to help you grow.
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
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