# Working from home: what does it mean for your taxes? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-11-18 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Claim Tax Relief for Working from Home in the UK Meta Description: Discover how to claim tax relief on increased costs incurred from working from home in the UK, potentially saving up to £280 over two years. URL: https://financedigest.com/working-from-home-what-does-it-mean-for-your-taxeshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/desk-with-various-gadgets-and-office-supplies-computer-smart-phone-and-stationery-arou-sbi-305198812-1736837199823-compressed.jpg) ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/james-turner-450x733-1736837199766-compressed.jpg) _By_ **_James Turner,_** _Director at Turner Little_ Businesses around the world are seeing the substantial benefits of remote working post-Covid-19. With more flexible work policies in place, and workers considering this new normal, the standard 9-to-5 workday is fast becoming a thing of the past. A common concern amongst millions of people, however, is what, if any, concessions [employees can claim as a result of their new workplace](https://www.financedigest.com/norway-wealth-fund-employee-sues-for-workplace-gender-discrimination.html "Norway wealth fund employee sues for workplace gender discrimination") arrangements. Even before the pandemic, employees [working from home](https://www.financedigest.com/working-from-home-everyone-is-different.html "Working from home, everyone is different.") could claim for increased costs, like heating or electricity bills, for the specified time at home. So, what’s changed now? During the 2020 lockdown, the UK’s HM Revenue & Customs (HMRC) launched an online portal that allowed you to claim a whole year’s tax relief, even if you only needed to work from [home for a day](https://www.financedigest.com/man-charged-under-britains-treason-act-over-christmas-day-incident-at-queens-home.html "Man charged under Britain’s Treason Act over Christmas Day incident at queen’s home"). This applies to 2020- and 2021- [tax years, allowing many employees to get two years’ tax relief](https://www.financedigest.com/adding-revenue-through-rd-tax-relief-service-2.html "Adding Revenue through R&D Tax Relief Service"), worth up to £280. **Is everyone eligible to claim?** Unfortunately, not everyone is eligible to claim tax relief, so you’ll need to check first using a [government tool](https://www.tax.service.gov.uk/claim-tax-relief-expenses/only-claiming-working-from-home-tax-relief). To make a claim, you must: \> Have been instructed to [work from home](https://www.financedigest.com/how-to-make-working-from-home-work-for-you.html "How to make working from home work for you") by your employer. Employees who choose to [work from home cannot claim tax](https://www.financedigest.com/eu-us-working-on-deal-to-make-ev-minerals-eligible-for-tax-credits-eu-official.html "EU, US working on deal to make EV minerals eligible for tax credits -EU official") relief. \> Declare that you have incurred specific extra costs as a result of [working from home](https://www.financedigest.com/savile-row-designer-on-working-from-home-winter-attire.html "Savile Row Designer on Working From Home Winter Attire"). \> Not be receiving a [working from home](https://www.financedigest.com/five-ways-to-keep-your-head-above-water-while-working-from-home.html "Five ways to keep your head above water while working from home") allowance directly from your employer. \> Not pay tax by self-assessment. **How much can I claim?** By claiming tax relief, yourself and not from your employer, the amount you can claim depends on your [income tax rate](https://www.financedigest.com/stanchart-surprises-with-40-profit-jump-ups-income-goal-on-rising-rates.html "StanChart surprises with 40% profit jump, ups income goal on rising rates"). It’s also important to [note working-from-home tax](https://www.financedigest.com/stroocks-tax-practice-adds-noted-transactional-advisor-michelle-m-jewett-as-partner-in-new-york.html "Stroock’s Tax Practice Adds Noted Transactional Advisor Michelle M. Jewett as Partner in New York") relief is an individual benefit, so multiple people in one household can claim. > **Basic-rate taxpayers** [get a tax](https://www.financedigest.com/self-employed-taxpayers-and-making-tax-digital.html "Self-employed taxpayers and Making Tax Digital") relief of 20% on £6, which equates to £1.20 a week, or £62 per year. > **Higher-rate taxpayers** get a tax relief of 40% on £6, which equates to £2.40 a week, or £125 per year. > **Top-rate taxpayers** get a tax relief of 45% on £6, which equates to £2.70 a week, or £140.40 per year. If your costs have incurred an increase of more than £6 per week, you can claim more, but you will need to apportion these extra costs specifically to the fact you’re [working from home](https://www.financedigest.com/disadvantages-key-challenges-to-overcome-when-working-from-home.html "Disadvantages – key challenges to overcome when working from home"). If you didn’t claim during the 2020-21 tax [year but worked from home](https://www.financedigest.com/home-battery-sales-in-germany-may-surge-59-this-year-study.html "Home battery sales in Germany may surge 59% this year -study"), you can backdate your claim for up to four years. This means you would receive a full year’s [payment in your next](https://www.financedigest.com/the-next-frontier-of-payments.html "The next frontier of payments") payslip. **How do I claim?** To claim working-from-home tax relief, employees can apply for free via [GOV.UK](http://gov.uk/). Once your application is approved, your tax code will be adjusted for the tax year. That way, your [employer will know how much to take from your pay](https://www.financedigest.com/uk-employers-see-slight-fall-in-pay-awards-over-2023-xperthr.html "UK employers see slight fall in pay awards over 2023 – XpertHR"). **About Turner Little** At Turner Little, we have been helping individuals understand what lies beneath for over 30 years. Based in the UK, we have a wealth of experience offering professional services to our clients, as professional Company Registration Agents, Registered Bank Intermediaries, [Business Consultants and Trust](https://www.financedigest.com/trusting-your-gut-how-to-harness-the-power-of-your-business-instincts.html "Trusting your gut: how to harness the power of your business instincts") providers. To get expert advice and up-to-date information on all things banking, tax and company formation, [speak to a member of our trusted team today](http://www.turnerlittle.com/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---