Tax Tuesday would like to try and ensure that everyone who might be entitled to the homeworking allowance during this pandemic, is getting it.
In short, if you have been required to work from home at any time during the pandemic in the tax year 2020/21 (and now, again, in the tax year 2021/22) and, as a consequence of that homeworking, your household costs have increased in carrying out your duties (thanks to heating, lighting, metered water, broadband, or business calls, perhaps), then you will be entitled to tax relief on a notional £6 cost per week for the whole year. You do not need to provide documentary evidence of those increased costs.
For employees on PAYE, the online portal at https://www.gov.uk/tax-relief-for-employees/working-at-home is where you might register your claim(s), which will then adjust your PAYE tax coding to yield the tax saving. You will need your government gateway details (or you can register to obtain these as part of the online process). For those individuals who prepare self-assessment returns, your claim(s) will need to be done via your annual tax return(s).
[By the way, if your additional homeworking costs exceed the notional £312 for 52 weeks, then you can substitute actual additional costs – but now you will need to back this up with evidence.]
At £6 per week relief, for the entire year, basic rate taxpayers can enjoy a £62.40 tax saving, with higher rate taxpayers at twice that amount, £124.80. These amounts are doubled, of course, if the requirement to work from home has applied for both years involved.
If you have any questions about claiming your tax relief, please do not hesitate to get in touch with your relationship principal, or with Chris Barrington, Tax Partner.