Given the shift change in working across the UK caused by the COVID-19 pandemic, it has meant a far higher percentage of the UK workforce working at least part of their working week from home and in-turn has dramatically increased the number claiming against the Home Working Allowance. This historically has been available to those officially having a “home working” contract but with the easements given due to the pandemic as well as the increased value brought in at the same time it has meant genuine value to individuals forced to work from home and allowed further support to the higher living costs spending more time at home as created.
HMRC revealed that since April, almost 800,000 employees who have been working from home during the pandemic have already claimed tax relief on household related costs.
The saving is worth up to £125 per year for each employee, and eligible workers can claim the full year’s entitlement if they have been told to work from home by their employer, even if it has been for one day during the tax year.
Employees who have either returned to working in an office since early April or are preparing for their return can still claim the working from home tax relief and benefit from the full year’s relief for the 2021 to 2022 tax year as it isn’t pro-rata’d and depending on an individual’s circumstances is either claimed through self-assessment or if not the on-line portal which can be found here:
Employees can apply directly themselves and receive the full tax relief that is due. Once their application has been approved, their tax code will be automatically adjusted for the 2021 to 2022 tax year, receiving the tax relief directly through their salary. Agents cannot use the online portal to apply on a customer’s behalf.