Working From Home Tax Relief Warning

If you’ve claimed any tax relief whilst working from home during the pandemic, you need to check your tax codes and whether HMRC has included that relief in their notice of coding.

The relaxed ability to claim work from home tax relief regardless of how many days you worked from home will only be in place until the end of the current tax year.

From 2020, employees were able to claim a home office relief of £6 per week, unless their employee covered their home office costs. However, this was only a temporary relaxation of the rules.

Unless you or your employee is still eligible for this tax relief in 2022-23, you should contact HMRC to get the notice of coding corrected, or you will have additional tax to pay at the end of the tax year. 

The home office relief is only available from the 6th of April 2022 onwards if an employee has specifically required you to work from home to stop the spread of COVID-19, or because your job has been relocated to a 100% home office role.

If the employee works some days in the office and some at home, they will not be eligible.

The updated HMRC guidance from 6 April 2022 states: ‘You can claim if your employer has not already paid your expenses and you have additional household costs as a result of working from home.’

One of the following must also apply: There are no appropriate facilities available on the employer’s premises for the employee to perform their job, the nature of the job requires the employee to live far away from the employer’s premises so it is not reasonable for them to travel on a daily basis, or the employee is required under government restrictions to work from home.

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