Tax Relief in 2020-21 for working from home

Home / Uncategorized / Tax Relief in 2020-21 for working from home

Tax Relief in 2020-21 for working from home

For the 2020-21 tax year (ending on 05.04.21) any employee who has been forced/asked to work from home can claim tax relief on the additional costs of working from home (e.g. Electricity and other utility bills etc).

There has always been an allowance claimable but for this year the government has announced that as a concession there is no need to keep detailed records and anyone can claim for the whole year even if employees only worked for a short time (even one day) at home .

The system for making the claim is outlined in the two links below.  It is relatively straightforward and will result in a refund of tax being paid to employees who make the claim via their PAYE code being increased automatically. This will mean a lump sum refund in the month the code is increased followed by lower tax payments for the rest of the tax year.

The tax refunds that can be claimed range from £62.40 for basic rate taxpayers to £124.80 for higher rate taxpayers, plus there is scope to claim extra if employees have incurred costs on office equipment etc that has not been reimbursed by their employers.

Please follow the links below to make a claim.

https://blog.moneysavingexpert.com/2020/04/martin-lewis–working-from-home-due-to-coronavirus–claim-p6-wk-/

https://www.gov.uk/tax-relief-for-employees/working-at-home