Employees can continue to claim work-from-home tax relief, but only if they make new claim for 2021/22 tax year, HMRC confirms

Employees can continue to claim work-from-home expenses, but only if they claim for the new tax year, it has been confirmed.

Throughout the coronavirus pandemic, workers have been able to claim up to £6 per week to cover the costs of additional household bills, such as heating, metered water, home contents insurance, or business calls.

However, claims made for the 2020/21 tax year will not be automatically rolled forward, meaning employees must make a new claim for the 2021/22 tax year.

Like last year, it has also been confirmed that the £6 per week will be available in full, even if the employee splits their time between work-from-home and the office.

Likewise, employees can continue to claim the relief for the whole tax year, even if they return to the office full-time later in the year.

Commenting on the relief, the Institute of Chartered Accountants in England and Wales (ICAEW) said: “Normally, employers can pay a tax-free allowance of up to £6 per week/£26 per month to employees required to work from home. During the coronavirus pandemic, employees can claim tax relief for this amount when employers do not reimburse costs.”

“ICAEW understands that once the pandemic is over, these rules will revert to the previous position under which the allowance is tax-free only where paid by employers.”

Employees may also claim tax relief if they purchased equipment to work from home, such as a laptop, chair, or mobile phone.

For help and advice claiming tax relief, please get in touch with our expert personal tax team today.

Posted in Business, Employment Law.