Remote working employees may be eligible to claim tax relief

Workers who have been told to work remotely by their employers because of Covid, may be eligible to make a tax relief claim if their household costs have increased.

HMRC received more than three million claims for the tax relief for the 2020/21 tax year and more than 550,000 employed workers have already claimed for this tax year and are benefitting from the tax relief.

HMRC says that those who are eligible can claim tax relief based on the rate at which they pay tax. For example, if an employed worker pays the 20% basic rate of tax and claims tax relief on £6 a week, they would receive £1.20 a week in tax relief (20% of £6 a week) towards the cost of their household bills.

Higher rate taxpayers would receive £2.40 a week (40% of £6 a week). Over the course of the year, this could mean customers can reduce the tax they pay by £62.40 or £124.80 respectively.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said, “Half a million people have already reduced their Income Tax this year by up to £125, by claiming tax relief on their working from home expenses.

“We want everyone who’s eligible to benefit, so we’ve made it quick and easy to do online. Check if you’re eligible and apply at GOV.UK by searching ‘working from home tax relief’.

“HMRC is continuing to help and support people affected by the pandemic.”

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