How to claim £125 a year tax relief for working from home – and new guidance for 2022
The government has issued new guidance on claiming tax relief for working from home. During the pandemic, millions of people were forced to switch to working from home due to Covid restrictions, which meant they were entitled to claim tax relief of up to £125 a year to cover additional related expenses at work.
While many workers returned to the office as restrictions eased, some opted to continue working from home. The government has now updated the official guidelines for claiming tax relief due to the different situation the country is currently facing.
While the tax relief eligibility rules remain unchanged, the government is reminding people that they cannot claim relief if they choose to work from home. So while millions of people would have been eligible to claim the relief in tax years 2020/21 and 2021/22, due to Covid rules, this will no longer be the case for the majority of workers in the during the 2022/23 tax year, which started this month.
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The updated guidelines aim to clarify eligibility criteria and help people understand what can be claimed and what cannot. For example, people may be able to claim tax relief on things like gas and electricity, and business phone calls. But you can’t claim the whole bill, only the part that relates to the work.
People can claim tax relief on £6 a week, or the exact amount of extra costs they have incurred beyond the weekly amount – but they will need to provide proof. Tax relief is paid based on the rate at which you pay tax.
An update on the government’s website reads: “Government instructions to work from home where possible, including the legal requirement to self-isolate if you or a close contact have tested positive for coronavirus , meant that in the tax years 2020 to 2021 and 2021 to 2022, millions of people across the UK were eligible to claim tax relief on extra household costs incurred as a result of working from home.
“The rules around eligibility for tax relief remain unchanged. But the lifting of pandemic-related restrictions means most will no longer be eligible from April 2022.
“Employees can use the online service to claim work-from-home tax relief. This microservice has been introduced to help expedite the claims process. It remains in place for the 2022 to 2023 tax year. For the reasons explained above, we expect claim levels to return to something close to pre-pandemic levels.
“Employers can always choose to reimburse employees for reasonable additional household expenses the employee has incurred while performing their duties from home under work-from-home arrangements.
“Where employers choose to make a payment to employees, employees cannot also claim from HMRC via the online service. This unless the employer’s payments are less than £6 per week. In this cases, employees may claim the difference, provided all other eligibility requirements are met.
For more information on applying for work-from-home tax relief, click here.
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