Employees can claim the working from home allowance for tax year 2021-22
08 April 2021
Those employees who incur extra household costs due to working from home regularly, for either part or all of the week, can claim the working from home allowance for tax year 2021-22. This also applies to individuals who have been instructed to work from home as a result of coronavirus.
The amount of tax relief available is £6 per week. The tax relief will be based on the rate at which a person pays tax, so, if, for example, an individual pays the basic rate of tax of 20%, they would receive £1.20 per week in tax relief.
Claims for tax year 2021-22 and the previous four tax years (2017-18, 2018-19, 2019-20 and 2020-21) can be submitted online here.
Once a claim has been successfully submitted, the individual’s tax code will be adjusted accordingly.
Employees can also claim for the exact amount of extra costs relating to working from home that exceed the weekly amount of £6. In these scenarios, however, they will require evidence, which could include receipts, bills, or contracts.
Expected additional costs include things such as heating, metered water bills, home contents insurance and business calls. They could also include a new broadband connection. Costs which would remain unchanged regardless of whether a person works from home or the office are not included. Examples of this include mortgage interest, rent, or council tax.
The information in this article is accurate at the time of publication. For all the latest information, news and resources on how the COVID-19 pandemic is affecting payroll professions, visit our Coronavirus hub.