Work From Home Tax Relief 2022 | Do You Qualify?

The UK government’s working from home tax relief provided a small boost to people’s finances during the pandemic. 

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Household costs increased when millions of people were forced to work from home during the country-wide lockdown and quarantine.

But did you know that this tax relief scheme predates the pandemic? 

The working from home tax relief was first introduced by the government in April 2003 where employers make tax-free payments to help employees under homeworking arrangements cover household expenses through claims or reimbursements of £4 a week.

However, the rules were temporarily changed in April 2020 when the Covid-19 pandemic happened. From £4 a week, the government raised it to £6. 

According to the HM Revenue and Customs, they received 3 million work from home tax relief claims for the 2020-2021tax year and more than half a million for 2021-2022.

Recently, a new update has been announced for the year 2022-2023 on home tax relief claims as the pandemic eased. Find out if you’re eligible for the work from home tax relief.

Who can claim the work from home tax relief? 

Before the new guideline updates, employees were allowed to make claims even if they didn’t provide any receipt or calculations that they were working from home.

This became a popular tax break in 2020 where an employee can claim a full year’s entitlement even if they only worked from home for one day.

Now that the covid-related conditions were removed, it became harder for employees to get the tax break. 

Under the new update for 2022-2023, employees can claim their tax relief if the job requires them to live far away from the office or if the employer doesn’t have an office.

On the other hand, employees who choose to work from home or if their employment contract lets them work from home for some or all of the time are not eligible to make a claim.

Additionally, they will also not be considered if their reasons for working from home is because of Covid-19 or the office is full. 

Fortunately, there is still a chance to apply for backdate claims for the tax year 2020-2021 and 2021-2022 if you still haven’t claimed your tax relief and with the following reasons: 

  • Employer advised to work from home
  • Increase in household costs because of working from home  (electricity, metered water, internet access, gas, business phone calls as well as equipment you bought exclusively  for working such as computers, desk and chairs)
  • Employer did not the expenses and extra cost for working at home

The deadline for backdate claims is until 5 April 2025 for 2020-2021 tax year, and 5 April 2026 for 2021-2022. 

How to apply for the work from home tax relief? 

HMRC has a specific portal for work from home tax relief claims. Follow these steps to apply for your claim:

  1. Visit the government portal and answer all the questions to check if you’re eligible for the tax relief .
  2. Create a government gateway ID if you don’t have one yet. Use your national insurance number and one form of ID such as your P60, recent payslip or UK passport. 
  3. Sign in and select the date when you began working from home. Fill out P87 for the  documentation and receipts of your work from home-related expenses and extra costs.  

The 2021-2022 work from home tax relief claim will be credited through your salary.

Make sure to check your PAYE tax codes because you’ll get a surprise tax bill if HMRC included the relief and you’re no longer eligible for the tax relief.

Additionally, you can’t apply for a claim if you’re self-employed but you can include some costs on your tax return. 

How much can I claim? 

There are two ways to get the payment:

  • Your employer can pay for the extra £6 a week tax-free through your salary.
  • You can apply for your claim at the HMRC if your employer doesn’t cover your work from home expenses. The amount will be deducted from your taxable income. 

 

 

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