| 12:51 pm

The onset and continuation of the Covid-19 pandemic forced millions of people in the UK to work from home to help curb the spread of the infection, leading the UK government to implement new rules for tax refunds for people working from home. In fact, in the 2020/2021 tax year, more than three million people claimed a tax refund for this reason. So, if you want to know if you can still claim tax relief working from home, keep reading below.
 

Can I claim a tax refund for working from home?

You can’t claim tax relief if the choice of working from home was yours. If your employer covered your expenses or paid you an allowance this will also nullify your claim. To be eligible your contract must state that working from home is a requirement of your job, or your employer can provide a letter confirming that working from home is part of your duties.

You may have made a homeworking arrangement with your employer and work at home on a regular basis for part of your employment. For example, if you work three days at home and then two at your workplace you should still be able to make a claim.

You can claim back for the past four tax years only and making a claim may update your tax code meaning that you could pay less income tax in the future.

Despite the tax relief offered to millions of workers across the UK, the rules for claiming working from home tax relief in 2022 are now different and must be kept in mind. As of 6 April this year, many workers will not be able to claim tax relief for bills related to electricity, gas and business phone calls even though they could do so in the past. The new and revised regulations now stipulate that you can only claim tax relief if you are necessitated by your job or employer to work from home and not that it’s a personal choice you make.

For example, you will not be able to claim relief if:
 

  • your employment contract lets you work from home some or all of the time;
  • you work from home because of Covid-19; or
  • your employer has an office, but you cannot go there sometimes because it’s full

 

Who is eligible for work-from-home tax relief?

Now that you know who can’t claim tax relief, let’s take a look at who is eligible for working from home tax relief. According to the UK government, you can claim it if you are obliged to work from home. Alternatively, you will also be eligible for tax relief if your employer is not covering your additional costs of working from home. Examples of these cases include if:
 

  • your job requires you to live far away from your office;
  • your employer does not have an office; or
  • there are no appropriate facilities available for you to perform your job on your employer’s premises

 

Can I backdate my tax relief claims?

If you find yourself in the position of no longer being eligible for relief but you were eligible for it last year, you are, in fact, entitled to backdate working from home tax relief. Backdating can go back as far as four years prior and starts being counted from 2022 when the pandemic began even though the law has been in existence for around 20 years. This is applicable even if you are no longer eligible under the new regulations. For example, the deadline to claim for the 2020/2021 tax year is 5 April 2025. The deadline to claim for the 2021/2022 tax year is 5 April 2026.

 

How do I claim working from home tax relief?

To progress with a claim you’ll need an exclusive Government Gateway user ID and password which are simple to create using your National Insurance number and a form of ID such as a recent payslip. You may also need receipts and bills for claiming any additional costs.

If you’re self-employed and complete an annual tax return you’ll be able to apply through your self-assessment.

Since you’re aware of your rights in terms of claiming funds back for your expenses, you need to know the steps to claim working from home tax relief. Here’s what you need to do:

  1. Visit the gov.uk microservice portal on the main website to see if you can claim.
  2. Answer the HMRC’s eligibility questions.
  3. Create your Government Gateway ID. (This will require you to submit details of your national insurance (NI) number and a form of identification – either a P60 or valid UK passport).
  4. Log in.
  5. State the date on which you started working from home.
  6. You will need to provide evidence of your expenses. This may include bills and receipts.
  7. Those doing self-assessments will not be able to use the HMRC’s online portal. You will rather be able to apply for the tax relief in your tax return.

 

How much tax relief can I claim?

Tax relief is based on the rate at which you pay tax so for the 20% basic rate you can claim £6 per week resulting in £62.40 a year. Higher rate taxpayers can claim £2.40 a week resulting in £124.80 a year.

At a weekly rate, the working from home agreement without having to provide receipts up until the 5th April 2020 is £4. After the 5th April 20202 this agreed rate increase to £6 per week. If you need to claim more than the agreed rate you’ll need to show evidence that extra costs have been incurred from working at home which may be deductible.

You’re also allowed to claim tax relief on the additional cost of gas and electricity and any work-related phone calls but doesn’t cover expenses that relate to both business and private use such as the internet.
 

Should I get a personal tax advisor?

Trusted tax accountants in London will provide you with all the assistance you need with regards to making a claim for any working from home deduction. Your HMRC tax return online will be handled accurately to ensure that all information is processed in the best interest of you and your business in accordance with taxation laws.

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