17th June 2021

Employees may be able to claim tax relief for additional household costs if they have to work at home on a regular basis, either for all or part of the week. This includes if they have had to work from home because of COVID-19.

From 6 April 2020, the amount employers have been able to pay tax-free without employees having to provide evidence of an increased bill is up to £6 a week (for previous tax years the rate is £4 a week). Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

Employees will get tax relief based on the rate at which they pay tax. For example, if an employed worker pays the 20% basic rate of tax and claims tax relief on £6 a week, they will receive £1.20 a week in tax relief towards the cost of their household bills.

HMRC will accept backdated claims for up to 4 years if an employee was required to work from home in the 2020/21 tax year but did not claim for the tax relief. They will receive a lump sum payment for any successful backdated claims.

Further guidance can be found here.

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