Advice + Tax + Accounts for smart business owners.
April 22nd 2022

Working from home - new rules on expenses from 6 April 2022

For the past two years employees who have chosen to work from home due to the pandemic have been able to claim an allowance for working from home.

However, updated guidance from HMRC makes clear that, effective from 6 April 2022, employees cannot claim simply because they have chosen to work from home.

As the guidance makes clear:

"You may be able to claim tax relief for additional household costs if you have to work at home on a regular basis, either for all or part of the week. This includes if you have to work from home because of coronavirus (COVID-19).

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

You may be able to claim tax relief for:

  • gas and electricity
  • metered water
  • business phone calls, including dial-up internet access

You cannot claim for the whole bill, just the part that relates to your work."

Eligible employees can either claim tax relief on:

  • £6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) - you will not need to keep evidence of your extra costs; or alternatively
  • the exact amount of extra costs you’ve incurred above the weekly amount - you’ll need evidence such as receipts, bills or contracts.

Successful claimants get tax relief based on the rate at which they pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20% of £6).

Taxpayers must ensure they meet the rules for claiming, as they may be prosecuted if they deliberately give incorrect or misleading information.

Contact us today for assistance with your personal tax affairs.

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