Hundreds of thousands of remote workers have only days remaining to secure annual tax relief worth up to £140. This relief lowers income tax liability, allowing individuals to retain more earnings or obtain refunds for extra household expenses incurred while working from home.
Eligibility Criteria for the Relief
Workers qualify if their job demands residing far from the office or if the employer lacks an office space. The requirement must stem from job necessities, not personal choice. Offices that occasionally reach capacity do not qualify employees for this benefit.
Cover only work-specific costs, such as business calls, heating, or electricity in the designated workspace. Exclude dual-use expenses like rent or internet services.
Relief Amounts and Calculation
Opt for a simplified £6 weekly claim or submit exact expenditures with supporting evidence like receipts or bills.
The relief value aligns with the taxpayer’s rate:
- Basic rate (20%): £1.20 weekly, totaling £62.40 yearly.
- Higher rate (40%): £2.40 weekly, equaling £124.80 annually.
- Additional rate (45%): £2.70 weekly, reaching £140.40 per year.
Exceeding £6 weekly? Submit precise costs for reimbursement.
Deadline and Policy Change
Claims must arrive before the tax year closes on April 5. The relief ends completely from April 6 following its elimination in the previous Budget.
Checking Your Tax Code
Verify tax codes via the personal tax account at GOV.UK, recent payslips, the HMRC app, or a Tax Code Notice letter. Access requires a Government Gateway ID or alternatives like National Insurance number plus verification documents, including passports, driving licenses, payslips, P60s, or credit details.
How to Claim
Submit claims for the current tax year and up to four prior years directly through GOV.UK. Self-assessment filers include it in their returns. Provide evidence for all claims.
Avoid third-party tax refund services, as they deduct commissions and risk invalid claims leading to repayments plus fees. Deal exclusively with HMRC to maximize benefits.
