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Working from Home? You may be eligible to claim tax relief in 2021 to 2022

HM Revenue and Customs (HMRC) is accepting tax relief claims for working from home due to coronavirus for the tax year 2021 to 2022. 

If employed workers were told to work at home by their employer because of coronavirus and, as a result, their household costs have increased, they are eligible to claim the working from home tax relief. A claim can be made through the HMRC tax portal to adjust the tax code OR on the self assessment tax return if one is prepared. The claim is either for a fixed £6 per week or for the exact amount of extra of extra costs with evidenced receipts.

You cannot claim tax relief if you choose to work from home.

Eligible taxpayers claim tax relief based at the rate on which they pay tax. For example, if an employed worker pays the 20% basic rate of tax and claims tax relief on £6 a week, they would receive £1.20 a week in tax relief (20% of £6 a week) towards the cost of their household bills.

Higher rate taxpayers would receive £2.40 a week (40% of £6 a week). Over the course of the year, this would mean reducing the tax they pay by £62.40 or £124.80 respectively.

To claim for tax relief for working from home, employees can apply directly via GOV.UK if they do not complete a self assessment tax return. Once their application has been approved, the online portal will adjust their tax code for the 2021 to 2022 tax year. 

HMRC will accept backdated claims for up to 4 years. You could receive a lump sum payment for successful backdated claims.

Further information

Find out more about claiming tax relief on work related expenses.

See the online portal for working from home expenses.

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