Work from home tax relief: what employees need to know

May 07, 2021
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It was confirmed this April that employees can continue to claim tax relief on work from home costs not reimbursed by employers, but only if they make a new claim for the 2021/22 tax year.

Here’s what you and your staff need to know.

What is the work from home tax relief?

Throughout the coronavirus pandemic, employees have been allowed to claim tax relief of up to £6 per week for costs incurred while working from home, such as additional heating and electricity bills.

Employees can also claim relief on the actual amounts incurred, but must provide evidence, such as phone bills, to do so.

How much relief can employees claim?

Employees are entitled to the full £6 per week/£26 per month for the entire tax year even if their time is split between the home and the office.

This applies even if an employee returns to the office full-time during the tax year.

How can employees apply?

Employees can claim the work from home allowance via their Self Assessment tax return or the dedicated Government gateway – which should prove much easier to access.

Employees should use this link to find more information and to apply for relief.

Will 2020/21 claims roll forward?

No. The Government has confirmed that any work from home claims must be renewed for the 2021/22 tax year.

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For help and advice with related matters, please get in touch with our expert team today.

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