If you work from home on the instruction of your employer, incurred additional expenses as a result thereof, you may be eligible to claim tax relief from HMRC.
In 2020/2021 the HMRC received in excess of 3 million claims for tax relief. According to GOV.UK more than 500k people have claimed and are benefitting from ‘working from home tax relief’ this year already.
If an employed worker has been instructed to work from home due to the Covid-19 pandemic and has incurred expenses as a result of spending more time at home, the worker may be eligible to claim tax relief from HMRC.
Taxpayers can check their eligibility on GOV.UK’s portal by clicking here.
HMRC’s Director General for Customer Services , Myrtle Lloyd, 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.
From the 6th April 2020, employers have been able to pay up to £6 a week tax free without employees having to provide proof of an increased expense. For those employees not receiving the work from home expenses from their employer can apply for the tax relief from HMRC directly.
Eligible tax payers can claim tax relief based on the rate at which they pay tax. Take a look at this scenario by GOV.UK:
Employed worker pays 20% basic rate of tax
Claims tax relief at £6 a week
Would receive £1.20 a week in tax relief (20% of £6) towards household bills.
Respective savings over the year (52-week period): £62.40
Higher tax payer pays 40% basic rate of tax
Claims tax relief at £6 a week
Would receive £2.40 a week in tax relief (40% of £6) towards house bills.
Respective savings over the year (52-week period): £124.80
Workers can apply for tax relief directly on the GOV.UK website by clicking here. Subject to approval, the online portal will then adjust the tax code for the 2021/22 tax year and the approved applicant will then receive tax relief until the end of March 2022.
If employees did not previously claim for tax relief, they are still able to claim the backdated tax relief. HMRC will accept backdated claims up to 4 years and will pay a lump sum to the approved person.