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Household Bills

800,000 people claim work from home tax relief worth up to £125 a year

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
29/06/2021

Nearly 800,000 people who have been working from home during the pandemic have claimed tax relief on household bills since April, HM Revenue and Customs (HMRC) has revealed.

The saving is worth up to £125 per year and you’re eligible for the whole year’s tax relief even if your employer requests you to work from home for just one day in the tax year.

Employees who have either returned to working in an office since early April or are preparing for their return can still claim the working from home tax relief and benefit from the full year’s relief for 2021/22.

The maximum amount you can currently claim tax relief on is £6 a week.

The amount of tax relief you get is based on the rate at which you pay tax.

If you pay the 20% basic rate of tax and claim tax relief on £6 a week, you would receive £1.20 a week in tax relief. If you pay the 40% higher rate you receive £2.40 a week. Over the course of the year, this means you can reduce the tax you pay by £62.40 or £124.80 respectively.

Myrtle Lloyd, director general for customer services at HMRC, said: “More people are getting back to office working now, but it’s not too late to apply for tax relief on household expenses if they’ve been working from home during the pandemic.

“It’s quick and easy to check if you’re eligible and apply online – go to GOV.UK and search ‘working from home tax relief’.”

You can also apply for the tax relief through your annual tax return.

You do not need to provide evidence to show your bills have increased unless you are applying for tax relief on costs above the £6 per week flat rate.


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