Tax Relief for employees working from home during COVID-19 lockdowns

Since the start of the full lockdown, employees have been able to claim the £6 per week./£26 per month home working allowance tax and NI free, unless these amounts have been paid by their employer as a tax free allowance. HMRC have now confirmed that for the whole of the year to 5 April 2021 they will allow a claim by an employee even if the individual has a mix of home and office working. The £6/£26 does not need to be pro-rated for either those who work part-time or who are only working at home part time. Employees can claim this deduction by one of the following methods:

After submitting the claim the employee will get a coding adjustment for the year ended 5 April 2021 or a cheque if a claim is made after 5 April 2021. The time limit for a claim is four years from the end of the tax year so, for 2020/21 a claim must be made by 5 April 2025.

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