Homeworking Tax Relief Changes

Work from Home

Employees who claimed tax relief for working from home during the pandemic may no longer qualify in 2022/23 as legal legislation has been lifted. Those who have been claiming should review their tax codes to check whether HMRC has included the relief in their notice of coding. 

 

During the pandemic HMRC allowed anyone working at home due to the pandemic lockdowns to apply for the tax relief for the whole year regardless of how many days they worked at home, but this relaxed interpretation of the rules is only in place until the end of the tax year.

 

Those who have been claiming should review their tax codes to check whether HMRC has included the relief in their notice of coding. If this is the case, unless still eligible for the relief in 2022-23, employees should contact HMRC to get the notice of coding corrected. Otherwise, they will have additional tax to pay at the end of the tax year.

 

During the Covid-19 lockdowns, people newly working from home were encouraged to apply for tax relief for the whole year, regardless of how many days they worked from home. The Government relaxed the rules regarding home office wording and the associated eligibility for claiming relief for the 2020-21, 2021-22 and 2022-23 tax years.

 

From 6 April 2022, the home office relief will only be available if your employer specifically requires you to work from home, e.g. to stop the spread of Covid. This means that the popular hybrid wording arrangements where staff spend a few days in the office and a few days at home will not qualify as this is flexible working.  

 

HMRC recently clarified its guidance on eligibility for the relief, https://www.gov.uk/tax-relief-for-employees/working-at-home

 

For more information, please contact your local Lentells office:

Chard – 01460 64441, chard@lentells.co.uk

Seaton – 01297 20584, seaton@lentells.co.uk

Taunton – 01823 286274, taunton@lentells.co.uk