Did you know that even if you have started working back at your office now that restrictions are easing, you may still be able to claim tax relief for working from home? Previously, employees were unable to claim this relief and the only way they could obtain costs for working from home was for the employer to agree to reimburse them for the additional costs.
Change of rules
The rules were relaxed by HMRC last year at the start of the new tax year on 6 April 2021. This meant that tax relief could be claimed by employees for the additional costs of working from home, with the requirement for employers to reimburse the costs no longer applicable. The same will apply in 2021/22 whilst the pandemic means that some employees are still required to work from home.
Relief for additional expenses
We see this as a positive move from HMRC, as workers can easily claim their tax relief for additional household expenses such as heating and home insurance, that would be over and above ones that would stay the same if working at the office. Business equipment such as laptops and mobile phones can also be included for tax relief. Alternatively, employees can just claim tax relief on a fixed allowance of £6 per week with no evidence of actual costs being required for this claim.
You cannot claim if you choose to work from home, but if you were forced to work from home due to the pandemic, even if only for one day, then you should be able to apply for the relief. If you have not claimed your allowance for 2020/21 tax year, then you can do it at the same time as claiming for 2021/22, either on your self-assessment tax return or by completing the online application (see link below).
If you have any questions about this or any other tax relief, please do give us a call on 01844 261155, or email email@example.com.