Claiming Tax Relief for Working From Home Expenses Just Got Easier….!

To assist taxpayers, HMRC has launched an online portal for the making of working from home expenses incurred during the pandemic.

From 6 April 2020, employees can claim a tax-free amount of £6 a week to cover the additional costs of working from home. For a basic rate taxpayer, this works out to tax relief of £62.40 over the course of 2020/21, with relief of £124.80 for a higher rate taxpayer.

Taxpayers do not have to provide any evidence, such as increased bills, to support the £6 a week claim.

What to claim

For 2020/21, HMRC, in recognition of the unusual circumstances, are generously permitting a claim for the entire year regardless of how many weeks you are required to work from home. It doesn’t matter if you only work at home one or two days a week. If two or more people work from the same home, then each person is entitled to make a claim.

The amount to claim for 2020/21 is £312 (52 weeks at £6). The online portal can also be used to claim for the final two weeks of 2019/20 after the lockdown commenced.

The online portal

There are two circumstances when the online portal is not applicable:

  • When your employer is reimbursing the £6 a week allowance – you are already benefiting from the tax-free amount.
  • If you complete a self-assessment tax return – the expense claim should instead be made on the return.

Do not expect a tax refund once an online claim is made. Relief is given by adjusting your PAYE coding, so this will reduce PAYE over the remainder of 2020/21.

You can check here if you are entitled to claim work-related expenses, and then, if entitled, proceed with a claim.

Photo by Charles Deluvio on Unsplash

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