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New claims required for working from home tax relief

New claims required for working from home tax relief

April Foster

Employees who work from home due to the COVID-19 pandemic will need to make a new claim for the 2021/22 tax year so that they can continue to claim tax relief where they have not been reimbursed by employers. 

Claims that were made in the 2020/21 tax year will not be automatically rolled forward. For employees who continue to work from home, a new claim will need to be made for the 2021/22 tax year.

Employers can ordinarily pay a tax-free allowance of up to £26 per month (or £6 per week) to employees who are required to work from home. Due to the pandemic, employees can now claim tax relief for this amount when employers do not reimburse costs.

The purpose of this allowance is to cover tax-deductible costs that employees working from home may have. E.g. cost of telephone calls, lighting and heating in the workspace etc. 

This change means employees can make a claim via the following methods: self-assessment return, postal form P87 or via the government gateway to claim tax relief in-year through their PAYE code.

To find out which route to use, click here to learn more on HMRC’s online claims checker.

For further advice on any of the information contained in this article, please contact your usual Moore adviser.