In April 2020, the government announced a temporary tax break for those working from home, as an effect of the coronavirus pandemic. Although many workers are now returning to the office, you can still claim tax relief for working from home this tax year, even if it was just for one day.
Depending on the rate of tax in which a person pays, will determine how much working from home tax relief they can claim.
- Basic rate taxpayers can claim £1.20 tax relief a week (20% of £6)
- Higher rate taxpayers can claim £2.40 tax relief a week (40% of £6)
Over the year that will amount to £62.40 for basic rate taxpayers and £124.80 for higher rate taxpayers.
The tax break was originally supposed to end in April 2021 however, the government has extended the relief until April 2022.
Those who submitted a claim for last year will have to submit a new claim for the 2021/22 tax year.
Once the claim has been submitted and the online application has been approved, HMRC will adjust employees’ tax codes accordingly for the 2021/22 tax year. Employees will then receive the tax relief directly through their salary, until the end of March 2022.
Employees will not have to prove their bills have increased unless they are applying for tax relief on costs over £6 per week.
If you have worked from home for at least one day since 6 April 2021 and you have not yet claimed tax relief for the 2021/22 tax year, you can do so via the government website.
For more information on the working from home tax relief, feel free to contact us.
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