Two relaxations were introduced as a result of the COVID-19 pandemic lockdowns to allow millions of employees to claim tax relief for the costs of working from home during the 2020/21 and 2021/22 tax years. These were:
- The relaxation of the strict eligibility requirements; and
- Allowing relief to be claimed for the full year, even if there was a full or partial return to working at the employer’s location during the tax year.
From the current tax year 2022/23 onwards, employees who are eligible can still make a claim for tax relief for working from home. The claim can be made in self-assessment (SA) returns, Online, or on a Paper 87 Form.
The amount that can be claimed is £6 per week (£26 per calendar month), or actual evidenced amounts incurred on electricity and gas relating to the work area and business phone calls, as a deduction against earnings in respect of the weeks worked from home. A claim for the full tax year is no longer automatic.
Another key difference from 6 April 2022 for employees in England and other parts of the UK that did not continue COVID-19 working-from-home restrictions into 2022/23, is the very strict eligibility requirements.