Claiming Expenses When Working from Home

Claiming Expenses When Working from Home

If you or your employees are still working from home due to the coronavirus pandemic, HMRC is accepting tax relief claims for the 2021/22 tax year. 

With over three million workers in the UK having already claimed this tax relief since the pandemic began, we want to make sure that all of our clients know about it and have shared details with their employees. 

HMRC is offering this type of tax relief because working from home results in increased household costs. If an employee hasn’t received expenses for working from home direct from their employer, they can apply for tax relief based on the rate at which they pay tax. 

For instance, a basic rate taxpayer can claim 20% tax relief on £6 a week, which is £1.20 a week towards the cost of their household bills. Higher rate taxpayers receive 40% on £6 a week, which is £2.40 a week. Whilst this may not sound like much, it actually equates to £62.50 and £124.80 a year respectively. 

Employees can apply for tax relief whilst working from home via the GOV.UK website