How to Claim Working from Home Tax Relief

Author: Samuel Beckingham
Updated: Oct 24, 2022
3 minutes read

If you were told to work from home during the pandemic, you can claim tax relief up to £140 per tax year. The costs are designed to cover what you paid for the extra use of heating, lighting and broadband during that time, and you can claim for the two years covering the pandemic.

You are able to claim for this tax year, but the rules have changed and aren’t as lenient. As such, if you were told to work from home during the pandemic, even for just a day, you can claim the full tax relief.

Eligibility Over the Pandemic

While the rules for working from home tax relief were relaxed between 2020 and 2022, not everyone is able to make a claim. To be eligible, the following must apply:

  • Your employer told you to work from home. You cannot claim if you chose to work from home

  • You paid higher utility costs due to working from home (you do not have to provide evidence for this)

  • Your employer didn’t cover your costs as a result of working from home

How to Get Tax Relief

If you’ve ticked off the checklist above, then you are able to claim the working from home tax relief. There are a couple of ways of doing this, which are outlined below.

You are able to claim the tax relief in one of the following two ways:

  1. Your employer covers your expenses tax-free into your wages

  2. You make a claim

If your employer isn’t willing to pay you your entitlement, then you can claim it yourself. The only difference is, you’ll be taxed on the claim.

How Much You Can Get

The tax relief is dependent on your level of income tax. It takes off a percentage of tax from a flat rate of £6 a week.

  • For basic-rate taxpayers (20%), you will get £1.20 on £6 a week (£62 per tax year)

  • Higher-rate taxpayers (40%) will receive £2.40 on £6 a week (£125 per tax year)

  • A top-rate taxpayer (45%) will get £2.70 on £6 a week (£140.40 per tax year)

You are able to backdate the claim. The deadline for these claims are 2025 and 2026 for the tax years 2019/2020 and 2020/2021, respectively.

How Is It Paid?

This is usually paid as a lump sum in your next salary payment, but can also be in the form of a cheque. Either way, a healthy £280 bonus won’t do any harm.

Check your eligibility by filling in a few details.