Maximizing Your Tax Relief: Don't Miss Out on Working from Home Benefits

The COVID-19 pandemic has transformed the way we work, with many of us shifting to home offices. This change has led to increased household expenses, from higher utility bills to the need for dedicated workspaces. Fortunately, the UK government recognised these challenges and introduced tax relief measures to support employees working from home during the pandemic.

Understanding the Working from Home Tax Relief

If you were required to work from home during the 2020/21 tax year (6 April 2020 to 5 April 2021), you might be eligible for tax relief on additional household costs. Here's what you need to know:

• Eligibility Criteria:

  • You must have been mandated by your employer to work from home due to the pandemic.

  • The relief is applicable even if you worked from home for just one day during the tax year.

    
    

• Relief Amount:

  • You can claim a flat rate of £6 per week without needing to provide evidence of increased costs.

  • This translates to a tax relief of £62.40 for basic rate taxpayers (20%) and £124.80 for higher rate taxpayers (40%) over the year.

    
    

How to Claim Your Tax Relief

The deadline to claim tax relief for the 2020/21 tax year is approaching on 5 April 2025. To ensure you don't miss out:

• Online Submission:

  • Use HMRC’s dedicated online portal to submit your claim. This method is quick, and once approved, your tax code will be adjusted accordingly.

• Postal Submission:

  • Alternatively, complete the P87 form and mail it to HMRC. Ensure it's received before the deadline to avoid any issues.

    
    

Important Considerations

• Backdated Claims:

  • If you haven't claimed for the 2020/21 tax year yet, it's not too late. HMRC allows backdated claims up to four years.

• Evidence Requirements:

  • For the flat rate claim of £6 per week, no additional evidence is required. However, if you're claiming for actual expenses exceeding this amount, retain all relevant receipts and bills.

    
    

Act Now: Secure Your Entitlement

Time is of the essence. With the 5 April 2025 deadline looming, it's crucial to act promptly to claim your entitled tax relief.