Working from home tax relief changes

HM Revenue and Customs have issued a warning to those who have been working from home for the past few years that they will no longer be able to claim blanket tax relief if they choose to work from home.

During the Covid pandemic the Government urged people to work from home if possible. This led to a change in the tax rules for home working, which meant anyone who worked at least part of the week at home could get additional financial help to cover a portion of their utility bills. Many people switched to remote work when the pandemic began and took advantage of tax relief for doing so.

UK workers had until the end of the financial year on April 5th 2022 to claim the allowance which was worth up to £125 in total for the 2020-21 and 2021-22 tax period.

The rules have been updated as the country gets back to living with Covid. New guidance from the government states that going forwards, you will only be able to claim if you work from home on a regular basis, your employer has not already paid your expenses and you have additional household costs as a result of working from home.  Importantly, the guidance also states that in order to claim, you cannot just have chosen to work from home and that you may be prosecuted if you give misleading information when making a claim.

You may still be eligible to claim working from home tax relief if your company has asked you to work from home, you are required to work from home to comply with government guidelines or there are no appropriate facilities available for you to perform your job on your employer’s premises.