HMRC have received more than 54,800 claims via their new online portal which allows workers to claim tax relief for working at home. The new portal was launched on 1 October 2020 in order to process tax relief on additional expenses for employees who have been told to work from home by to help stop the spread of coronavirus.
From 6 April 2020, employers have been able to pay employees up to £6 per week tax free to cover additional costs incurred through working at home. Employees who have not received the working from home expenses payment from their employer can apply to receive the tax relief from HMRC.
Once the application has been approved, the online portal will adjust an individual’s tax code for the 2020 to 2021 tax year. The employee will receive the tax relief directly through their salary and will continue to receive the adjustment until March 2021.
Eligible taxpayers 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.
HMRC is also reminding employed workers, for example healthcare workers and care home staff, that they can also claim tax relief on work-related expenses, including cleaning their work uniforms.
Individuals may be able to claim tax relief on the cost of:
- expenses for working from home
- repairing or replacing small tools needed to do their job (e.g. scissors or an electric drill)
- cleaning, repairing or replacing specialist clothing (e.g. a branded uniform or safety boots)
- business mileage (not commuting)
- travel and overnight expenses
- professional fees and subscriptions
You can apply online directly to HMRC and see instantly if they are eligible for tax relief on work expenses.
