HMRC tighten “working from home" tax relief

During the pandemic, directors and employed workers got used to the fact that almost all of us could claim the full £6 per week (£312 for the year) working from home allowance. This of course only equates to £62.40 in tax for basic rate tax payers and £124.80 in tax for higher rate tax payers.

However, the rules have now changed and many of us will be unable to claim this going forward.

The Rule Changes

You can claim tax relief if you have to work from home, for example, because:

• your job requires you to live far away from your office

• your employer does not have an office

• your contract stipulates that you must work from home.

You cannot claim tax relief if you choose to work from home. This includes if:

• your employment contract lets you work from home some or all of the time

• you work from home because of COVID-19

• your employer has an office, but you cannot go there sometimes because it’s full

N.B.

It is important to bear in mind that living far away from the office is not the same as being required to live far away from the office.