HMRC has revealed that, since April, nearly 800,000 employees have claimed tax relief for working from home during the pandemic.
Employees can claim a full year’s entitlement where their employer has instructed them to work from home, even when they have only worked from home for one day during the tax year. Employees who have returned to the office to work since April 6th or who are due to return shortly are still able to claim the working from home tax relief for the entirety of 2021-22 tax year.
Once an employee has had their application to HMRC approved, they will see an adjustment to their tax code which will mean that the tax relief is applied automatically to their salary.
The tax relief available is based on £6 a week and eligible employees will receive tax relief based on their highest rate of tax. i.e. a 40% taxpayer would receive £2.40 per week towards the cost of their household bills or nearly £125 per year.
Potential claimants, that haven’t yet taken advantage of the relief available have up to four years to apply. If you have been eligible in any or=f the previous four years, you can also backdate your claim (to the 2017-18 tax year).