working from home uk tax relief

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How to claim the working from home tax relief.

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Updated May 9, 2024

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Important information

Tax treatment depends on your individual circumstances and may be subject to future change.

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Were you told by your employer to work from home during the pandemic? If so you can apply for tax relief up to £140 per tax year .

Some workers will be able to claim for this 2022/23 tax year too, giving them up to £420 in tax relief . The money is to cover extra costs such as higher heating and broadband bills. Don’t worry if you have yet to claim as the HMRC deadline is a couple of years away.

In the article, we explain:

• How does WFH tax relief work?
• How to claim WFH tax relief
• When is the deadline to apply for the relief?
• Can you make a claim for the 2022/23 tax year?
• Who is eligible and how do you check?
• How much will you get in WFH tax relief?

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What is WFH tax relief?

As a result of the pandemic, millions of people were told to work from home by their employers over the past couple of years.

While commuting costs will have fallen, other bills such as your gas, electricity and internet are likely to have increased as a result of you spending more time at home.

To help cover these extra costs, HMRC allows you to claim tax relief. You can do so using a designated online portal .

Around three million people made a claim for the entire 2020/21 tax year.

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How to claim working from home tax relief

To claim for the working from home tax relief:

• Head to the government’s microservice portal and answer the eligibility questions
• During this process you also be asked about other work-related expenses that you could claim for too
• your national insurance number
• a recent payslip or P60 or a valid UK passport
• Once logged in, state the date that you started working from home
• If you have been working since the start of the first lockdown (23 March 2020 ) put that date in and you will get a rebate for two whole tax years (6 April 2020 to 5 April 2021 and 6 April 2021 to 5 April 2022) and the two weeks extra
• If you have already claimed for 2020/21 tax year, you will not automatically receive a refund for the 2021/22 tax year. You must again use the microservice portal to apply.

NOTE: If you do self-assessment, you won’t be able to use HMRC’s online portal; instead apply for the tax relief in your tax return . 

How is the tax relief paid?

You can backdate a claim to cover the first tax year of the pandemic (2020/21) and the two weeks before as well as the second year (2021/22), if you have been working at home since the first lockdown was announced on 23 March 2020.

Where an employee meets the criteria to claim tax relief for working from home and makes a claim for previous years, HMRC will issue a tax refund.  This is usually in the form of a cheque.

If you are claiming for the current tax year then you will pay less tax when you are paid. This means your tax code will change.

How much tax relief will I get?

There are two options to getting the tax relief:

• Your employer: can cover your expenses and pay them into your wages tax-free
• You claim: given the difficult time that many businesses have faced, you are more likely to claim tax relief from HMRC instead of your employer covering the costs

NOTE: You can’t do both. You will be unable to claim tax relief if your employer is paying your expenses.

If you do claim yourself, how much you will get depends on the rate of income tax you pay:

• Basic-rate taxpayers get £1.20 a week (tax relief of 20% on £6) = £62.40 per tax year
• Higher-rate taxpayers receive £2.40 a week (tax relief of 40% on £6) = £124.80 per tax year
• Top-rate taxpayers will receive £2.70 a week (tax relief of 45% on £6) = £140.40 per tax year

If you didn’t claim for last tax year or the one before but worked from home, you can backdate your claim. This means you would get up to two full years’ payment as a lump sum in your next salary.

If you are eligible to claim for the current tax year too, that’s three years of tax rebates, meaning:

• Basic-rate taxpayers could receive as much as £187.20
• Higher-rate taxpayers could get up to £374.40
• Top-rate taxpayers could receive up to £421.20

HMRC will accept backdated claims for up to four years.

Working-from-home tax relief is an individual benefit, so a couple or a group of flatmates can all claim it if you are all working from home.

You can use our income tax calculator to work out your payments.

What is the deadline to apply for WFH tax relief?

If you worked from home during the 2020/21 and 2021/22 tax years but failed to apply for the rebate, you can still do so. HMRC says it has no plans to close the online portal or microsite.

Claims can be backdated, meaning that you may be eligible for up to £280 tax relief if you claim for both last tax year and the one before (essentially the two years during the pandemic). Few workers will be able to claim for the current tax year.

HMRC confirmed that you have until the 5 April 2025 to make claims for 2020/21 tax year, and until 5 April 2026 make claims for 2021/22.

Can I still claim for working from home tax relief in 2022/23 tax year?

Some workers will be able to claim for the current tax year. But many people won’t be eligible for this tax year as it is no longer a legal requirement to work from home.

You can claim if you have additional household costs as a result of working from home and your employer has not already paid these extra expenses.

In order to claim for this tax year, which started on 6 April 2022, one of the following must apply:

• You can’t perform your job on your employer’s premises because they don’t have the facilities; for example, your employer has a small office with no space for you to work there
• Your job requires you to live so far from your employer’s premises that it would be unreasonable for you to travel there every day; for example, the workplace is in Birmingham but your job requires you to work in Scotland
• Or government restrictions mean you must work from home; though these restrictions have now been removed so can no longer be applied for this tax year

To claim tax relief, you cannot have just chosen to work from home.

HMRC also warned that employers who simply tell employees to work from home may not be sufficient to claim tax relief. So if you are hybrid working (that is, working from home for part of the week), you can only claim tax relief if there is a lack of appropriate facilities on your employer’s premises to do your job.

The government has outlined several examples where staff can claim working from home tax relief.

If you do meet the criteria for this tax year you could be entitled to as much as £420 in pandemic-related tax relief when you include the past two tax years.

Does my tax code change if I work from home?

Yes, if you are in receipt of the work-from-home tax rebate then your tax code will change.

You can usually find your tax code on your pay slip. The most common tax code for the 2022/23 tax year is 1275L. The number represents the personal tax allowance for most earners in the UK, which is £12,750 – this is the amount you can earn in a year tax-free.

So if you’re in receipt of the tax rebate, this code will change to reflect the fact that you have a larger personal tax allowance. Although bear in mind that this number could be different for other reasons, such as if you’re receiving a different tax benefit like a company car.

If you have claimed the working from home tax benefit in the past and you’re no longer eligible, you should check your PAYE tax code to ensure you’re not still receiving it.

It’s important to check because if you continue to claim while no longer eligible, you will be forced to pay additional tax at the end of the tax year.

If you are receiving the working from home tax rebate when you shouldn’t, get in touch with HMRC to get your tax code changed.

Who is eligible for tax relief for the last two tax years?

Not everyone is eligible to claim for the last two tax years so you need to check first that you:

• Were told to work from home by your employer. You cannot claim tax relief if you chose to work from home
• Have had to pay higher costs related to working from home (but you don’t need to show evidence of this)
• Must not be receiving expenses directly from your employer to cover the extra costs of working from home

Do you pay tax by self-assessment? You can still claim the tax rebate but you need to apply for it in your tax return rather than through HMRC’s online portal.

If you are still unsure whether you are eligible, there is a government tool that can help you find out.

NOTE: If you are self-employed, you can’t claim because you work for yourself. However, you can claim expenses on your tax return.

If you are new to tax returns, check out our guide to self-assessment .

What if the rebate doesn’t cover my extra needs?

If the sum provided does not come close to the extra costs that you have incurred, you can apply for relief on higher sums.

There are two options:

• If you complete a self-assessment form each year simply add the claim to that
• Fill in the P87 form that allows workers to claim back expenses up to a maximum of £2,500

HMRC says that additional costs include things such as:

• Metered water bills
• Home contents insurance
• Business calls
• New broadband connection

They do not include costs that would stay the same whether you were working at home or in an office, such as rent, council tax, or your chocolate digestive habit.

You will need:

• Your employer’s name and PAYE reference (which you can find on your payslip or P60)
• Your job title
• Receipts (to provide evidence of these extra costs)

You won’t get back the full cost of the extra expenses, only tax relief on the total. For example: if you have spent £500 on extra costs, as a basic-rate taxpayer, you will see your net wages increase by 20% or £100.

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Working from home tax relief claims may still be possible for 2022/23

Published: 18 Jan 2023 Update History

Two relaxations were introduced as a result of the COVID-19 pandemic lockdowns to allow millions of employees to claim tax relief for the costs of working from home during the 2020/21 and 2021/22 tax years. These were:

• the relaxation of the strict eligibility requirements; and
• allowing relief to be claimed for the full year, even if there was a full or partial return to working at the employer’s location during the tax year.

From the current tax year 2022/23 onwards, employees who are eligible can still make a claim for tax relief for working from home. The claim can be made in self assessment (SA) returns, online , or on a paper P87 form .

The amount that can be claimed is £6 per week (£26 per calendar month), or actual evidenced amounts incurred on electricity and gas relating to the work area and business phone calls, as a deduction against earnings in respect of the weeks worked from home. A claim for the full tax year is no longer automatic.

Another key difference from 6 April 2022 for employees in England and other parts of the UK that did not continue COVID-19 working from home restrictions into 2022/23, is that the very strict eligibility requirements of s336, Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) apply.

These tests are summarised in HMRC’s guidance, at: 

• Claim tax relief for your job expenses - working from home
• EIM32760: Other expenses: home: working from home
• EIM32815: Other expenses: home: household expenses

For example, employees are not eligible to claim a deduction if they have chosen to work at home. Also, even if the contract allows the employee to work from home for some, or all of the time, no deduction can be claimed if the employer has appropriate facilities to allow the employee to work at the employer’s premises. An exception to this is where the nature of the job requires the employee to live so far from the employer’s premises that it is unreasonable to expect them to travel to those premises on a daily basis.

If making a claim for actual expenditure, a deduction is not allowed if the amounts are not wholly incurred in the performance of the employment (eg, costs of broadband that is used privately as well as for the employment).

It is not too late for employees to make a claim for 2020/21 and 2021/22. SA returns that have been submitted can be amended within twelve months of the filing deadline. HMRC’s portal allows backdated claims for up to four years.

• agents cannot file claims online, but can submit a paper form;
• claims cannot be made by phone;
• employees in SA must claim via their SA tax returns, and
• a claim cannot be made where the allowance (or reimbursement of evidenced amounts incurred) is paid to the employee by their employer, which would be tax-free under s316A, ITEPA 2003 , see HMRC’s guidance Expenses & benefits: homeworking .

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Working from home tax relief: what it is and how to claim it

Claiming working from home tax relief could knock up to £125 off your tax bill! Here’s how to claim it for working at home during the pandemic.

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Are you working from home? If so, you might be eligible for tax relief. With rising living costs and spiralling energy bills likely affecting your wallet, this is great news! But what can you claim? And how does the process work? Here’s a rundown.

Who can claim working from home tax relief?

If you are employed, you can claim working from home tax relief for the 2021/22 tax year if you meet the following criteria:

• Your employer required you to work from home, even for just one day, from 6 April 2021.
• You don’t file Self-Assessment tax returns.
• Due to working from home, your costs are higher.
• Your employer hasn’t covered your expenses.

If you are self-employed and working from home, you can claim relief on certain business expenses through your Self-Assessment tax return. Just remember to file by the tax return deadline!

What can you claim when working from home?

Right, so that’s who can claim working from home tax relief. What are you entitled to, though? Well, it depends on whether you’re employed or self-employed.

If you’re employed

You can claim basic working from home tax relief on up to £6 per week. For basic rate taxpayers, this means saving up to £62 in the tax year, and higher rate taxpayers will gain £124.

If you’re self-employed

How much you can claim as a self-employed taxpayer depends on whether you work more or less than 25 hours per month at home.

Do you work less than 25 hours per month?

You can claim tax relief on allowable expenses, which include office equipment, training fees and vehicles. You can also claim tax relief on utility bills – but only for the portion of the bill that relates to working from home.

How do you apportion these utility costs? There are a few ways. For example, you might divide the electricity bill by how many hours you work from home each month, or the number of rooms you use to run your business.

You should have evidence, such as utility bills, to support your claim.

Do you work 25 hours or more per month?

You can use ‘simplified expenses’ if you work from home for 25 hours or more per month. Using simplified expenses means you can claim a flat rate for working from home, vehicles and living at your business.

You can use the government’s simplified expenses checker to see what you can claim. Again, always keep paperwork to evidence your claim.

How do you claim tax relief for working from home?

To claim tax relief, visit the gov.uk website and answer the questions provided. Depending on your answers, you’ll either fill in a Self-Assessment tax return or complete your claim online.

How is the claim paid?

If you’re employed and your claim is successful, your PAYE tax code will change. This means you’ll get a tax rebate through your salary until March 2022.

If you’re self-employed, you’ll pay less income tax for the tax year.

What if it doesn’t cover your costs?

If the amount you can claim for doesn’t cover your costs, what you can do again depends on whether you’re employed or self-employed.

If you’re employed

The standard tax relief on £6 per week may not cover your costs. You can apply for higher home working expenses; however, you will need evidence to support your claim. You can’t claim on anything used for both personal and business use (e.g. broadband).

If you’re self-employed

Add the claim for higher expenses to your Self-Assessment tax return. Just ensure you have proof of costs incurred.

Can you backdate a claim?

Yes! If you’re employed , and you didn’t claim for the 2021/22 tax year, you can backdate a claim for working from home tax relief. This only applies if your employer asked you to work from home for at least one day during that tax year.

The UK government accepts backdated claims for up to four years, but it makes sense to apply sooner rather than later. To backdate a claim, you can apply through the gov.uk website.

A backdated claim will be paid as a lump sum in your salary. It’ll show up on your payslip.

If you worked at home at some point during the pandemic, you can claim tax relief for your expenses. Just make sure you’ve got evidence to support any claim you make. And remember, if you’re self-employed, the rules are slightly different, although you can still claim some form of tax relief on business expenses.

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Working from home tax relief guide for the uk.

Over the past 4 years, many workers in the UK experienced changes in how they interact with their workplace. Many had to work from home and experienced increases in household costs as a result. The HMRC recognized these increased work-related costs and changed the work from home (WFH) tax relief rules. This guide explains those changes and helps simplify making a tax relief claim for work-related household costs.

Key Takeaways

• You cannot claim WFH tax relief if your employer reimburses you for your expenses.
• You can claim a set weekly amount or the exact amount of costs above the weekly amount.
• You can submit your claim online or by post in most circumstances.
• You cannot claim relief if you choose to work from home.
• You can claim relief this year and the 4 previous tax years.

Table of Contents

What is WFH Tax Relief?

• Who is Eligible for Work from Home Tax Relief?
• What Can You Claim When Working from Home?
• How To Claim Tax Relief for Working From Home

How Much Tax Relief Can I Get for Working From Home?

What is the deadline to apply for wfh tax relief, can i still claim for working from home tax relief, streamline your tax preparation with freshbooks.

The HMRC working from home (WFH) tax relief applies to eligible claimants who work from home for some or all of the tax year. It is a government initiative aimed at assisting workers who experience an increase in costs as a result of working remotely during COVID-19. The tax relief for working from home is limited to items and expenses you pay for, including home office supplies, gas, and electricity. You cannot claim expenses your employer reimburses you for.

Who is Eligible for Work From Home Tax Relief?

The UK working from home tax relief applies to workers who work from home for part or all of the week. It can offset costs for workers who are required to work from home.

The tax relief only applies if working from home is a requirement of your employment. You are eligible to claim tax relief if your employer does not have a company office or if your job requires you to live far away from the office and a daily commute is not feasible. 

You are not eligible for HMRC tax relief if: 

• You work from home because of COVID-19 
• You choose to work from home for part or all of the week because your employment contract allows you
• Your employer has a local office, but sometimes occupancy limits prevent you from utilising it regularly

Work from home relief does not apply if you are self-employed.

What Can You Claim When Working from Home? 

You can claim a basic set amount or itemised values for work-related expenses. The set amount reflects the increased basic costs like heat, electricity, and your home phone for business-related calls. 

Applicable expenses in an itemised claim include:

• Repairing or replacing small tools you need to do your job (like scissors or a printer)
• Cleaning or repairing a uniform or specialist clothing required for your job
• Travel to and from work via transit, vehicle or bike if it is a temporary workplace
• Work-related travel and overnight expenses
• Professional membership fees and subscriptions, if these fees are required for you to be able to do your job
• Equipment that will last less than 2 years if you use it for work and there’s no significant private use
• Substantial equipment required for your job, such as computers

You cannot claim tax relief for things that you use for both private and business use, such as rent or your broadband connection. You also cannot claim tax relief for:

• The initial cost of clothing purchases
• Repair or cleaning of your everyday clothing
• Laundering costs of your uniform or specialist clothing if your employer provides a laundering service that you choose not to use
• Personal protective equipment (PPE)
• Professional fees and subscriptions reimbursed by your employer
• Cars, bicycles, or motorcycles

How To Claim Tax Relief for Working From Home 

Claiming working from home tax relief as a paid employee follows a similar procedure as any business expense. There are some limitations to eligibility—you can find out if you are eligible for relief using the government gateway online system . 

The rules changed for claiming household expenses for working from home as of 6 April 2022. 

You can only now claim working from home, if:

• Under government restrictions, you must work from home
• There is no suitable workplace at your employer’s premises for you to work
• The distance to and from your employer’s premises is unreasonable to travel daily

If you are eligible, you can claim relief online or by post using form P87 . The simplest and fastest way to submit your claim for expense relief is to use the government gateway ID system. You cannot use the online system if:

• You claim working from home expenses over £2,500
• You make claims for more than 5 jobs
• You complete the Self Assessment tax return

If you submit your tax refund using the complete Self Assessment tax return, you must file through your tax return. If you claim a tax rebate from more than 5 jobs, you must submit your claim by post.

You cannot claim tax rebate on any expenses your employer has reimbursed you for.

How is the Tax Relief Paid? 

When your claim is approved, you receive your expense relief through a change in your tax code. Your new tax code will include your working from home allowance. You won’t need to make a new claim in future years, and you’ll pay less tax on your salary for the following tax year.

Notify the HMRC if you stop working from home to eliminate end-of-year surprises. They will adjust your tax code so you don’t pay taxes at the end of the year. 

Claiming tax relief for extra expenses can all seem confusing and perhaps a little daunting. Learn how FreshBooks can take the pain out of tax preparation with this short video.

You can submit a claim for the set weekly amount or the exact amount of the additional costs above the weekly amount.

As of 6 April 2020, the flat rate is £6 per week. The set amount for claims before 5 April 2020 is £4. You do not need to provide receipts if you claim the basic amount.

The amount of relief you receive depends on your tax rate. Basic rate taxpayers get relief from tax on 20% of £6 or £1.20 in tax relief per week for your household expenses. Higher rate taxpayers get 40% of £6 per week.

If this is your first year working from home, you should keep all logs and receipts for your increased house costs. Moreover, you can also log and organise your expense using the FreshBooks expense and receipt tracking feature. These costs can add up quickly. It is easier to accurately calculate your claim if you have the information organised before tax time.

If the total amount is more than £6 per week, you can claim the extra costs above the £6 limit. You must provide detailed records and receipts to make a claim. 

You do not need to claim relief every year if your first claim is approved. Your tax code is adjusted to reflect your work from home status. You only need to make a new claim in future tax years if your work situation changes.

The deadline for the current tax year is 5 April the following year. However, the HMRC will accept backdated claims. You can make a claim for relief for working from home for this tax year and the previous 4 tax years. For example, the deadline to submit a claim for the 2020/2021 tax year is 5 April 2025. The deadline for the 2021/2022 tax year is 5 April 2026. 

You can still submit a claim if your household costs increased over the last 4 years. However, the HMRC updated the eligibility requirements for the 2023/2024 tax year. You cannot claim tax relief if you could go to your employer’s work premises but choose to work from home.

The HMRC relaxed the eligibility criteria during the tax years of 2020/2021 and 2021/2022 because workers were mandated to work from home and experienced the burden of the associated additional household costs. Previous tax years had stricter rules regarding tax rebates for extra costs.

Does My Tax Code Change If I Work From Home?

Your tax code and therefore taxable income will change if you work from home in the UK. A basic rate taxpayer may see a change in their overall income tax relief.

If your job requires you to work then you are entitled to claim tax relief for additional household costs. To cover expenses, you receive a decrease in taxes paid through your salary.

Working from home as a requirement of your job is not the same as being self-employed and operating a home-based business.

Working from home tax relief is one way the HMRC is helping workers offset the increasing household costs associated with having to work from home. By submitting your claim, you can have less tax taken off your salary, leaving more for your day-to-day expenses.

Ensure you are getting the most out of your tax return. FreshBooks accounting software can take the guesswork out of tax preparation and filing. Try FreshBooks free and sign up today to see how easy tax filing can be!

Navigating the rules and regulations of tax relief can seem daunting, but it doesn’t have to be. FreshBooks offers guides for many tax relief topics. Learn more about Business Tax Write-Offs for Small Business and start getting the most out of your money today.

More Useful Resources

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Levon Kokhlikyan, ACCA

About the author

Levon Kokhlikyan is a Finance Manager and accountant with 18 years of experience in managerial accounting and consolidations. He has a proven track record of success in cost accounting, analyzing financial data, and implementing effective processes. He holds an ACCA accreditation and a bachelor’s degree in social science from Yerevan State University.

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How to claim tax relief for working from home

Working from home due to coronavirus? You may be able to claim an extra £125 a year...

The good news is that it's possible for employed people to claim some money back for working from home expenses, in the form of tax relief paid by HMRC. Here's everything you need to know about claiming back costs ...

Can I claim tax relief for working from home?

If you’re employed and working from home, you can ask your employer to cover ‘reasonable’ costs that are specifically required for your employment. This might include desks, chairs and tech equipment.

‘There is no legal obligation for your employer to do this, but many will,’ says Faye Watts, tax partner at Fuse Accountants . ‘In many cases, employers may be willing to pay you an extra £6 a week to cover your increased costs, and this is tax-free.’

HMRC tax relief working from home

If your employer won’t pay, you can claim tax relief as an allowance through HMRC , even if you only work from home or one day in a tax year.

How much you can claim is calculated as a percentage of £6 per week, depending how much tax you pay:

• Basic 20% rate taxpayers can gain £1.20 (20% of £6) a week.
• Higher 40% rate taxpayers can gain £2.40 a week (40% of £6).

Can I claim tax relief for the 2021/22 tax year?

Yes, this applies for the 2021/22 tax year. Apply for working from home tax relief online at Gov.uk , or by calling HMRC .

Anyone required to work from home , even for one day, could also apply for tax relief for the whole 2020/21 tax year.

Working from home tax relief for the self-employed

If you’re self-employed , you can also take advantage of tax relief when working from home.

‘Self-employed people can claim a similar amount of tax relief to PAYE employees, starting from either £10, £18 or £26 a month, depending on the hours worked from home per month,’ says Faye.

‘Alternatively, you can claim tax relief on the expenses relating to the space in your property that you use for business, again based on how many hours you work fromhome in that space.’

How do I claim tax relief for working from home?

Applying for tax relief for working from home can be done through the government's dedicated site . "We want everyone to get the money that they are entitled to, so we’ve made the online service as easy to use as we can – it takes just a few minutes to make a claim," explains Karl Khan, Interim Director General of Customer Services at HMRC.

In order to claim, you'll need a Government Gateway User ID and password. If you haven't ever registered for this, you'll need to do so before you can claim. You can create a Government Gateway User ID through the HMRC Services website and you'll need your National Insurance Number and recent payslip, P60 or a valid passport.

GH TIP: If you do a tax return and pay tax by Self Assessment, you have to include your working from home relief on your tax return form.

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Our Complete Guide To Work From Home Tax Relief in the UK

As the work landscape continues to evolve in the wake of the global pandemic, more people are embracing the concept of working from home. To support these employees, the UK government has introduced a range of work from home tax relief schemes. In this comprehensive guide, we will discuss various tax relief options available for remote workers, including tax relief for working at home, how to claim tax relief for working from home, eligibility criteria and what’s changed with the work from home tax relief scheme in 2023.

What is The Work From Home Tax Relief Scheme?

The Work from home tax relief scheme, also known as Working from Home Allowance, is a Government scheme launched in 2003 to allows employees working remotely to claim tax relief on certain expenses incurred while working from home.

Initially set at a £4 a week tax-free sum, the allowance was increased to £6 a week with the pandemic forcing millions of workers to work from home.

Now that all Covid-related financial restrictions have been lifted, millions of employees are returning at work either full- or part-time. In response, HMRC revised its instructions for the 2022–23 tax year and overhauled some of their requirements to qualify for the tax relief.

Tax Relief for Working at Home: What Expenses Are Covered?

The tax relief for working at home aims to help home workers cover additional costs they might incur relating to business phone calls and electricity/gas.

A limitation of the work from home tax relief scheme is that you cannot claim claim back on bills that are used for both private and business use, for eg broadband.

Tax relief home working benefits can be claimed in two ways:

a) Flat-rate expenses: Employees can claim a flat-rate allowance of £6 per week or £26 per month, a standard amount set by the government to cover additional expenses incurred when working from home.

b) Actual expenses: If an employee believes that their actual expenses are higher than the flat-rate allowance, they can claim tax relief on the actual amount spent. However, this requires providing evidence and receipts for the additional expenses incurred.

If you wear a work uniform, specialist work clothing or Personal Protective Equipment (PPE), you may be able to claim additional expenses back .

How much tax relief can I claim?

You can either claim tax relief on:

• £6 a week since 6 April 2020, or
• the exact amount of extra costs incurred above the £6 weeklyamount, however you’ll need to provide evidence (receipts, bills or contracts).

Tax relief from working from home is based on the tax rate you pay. This means that if you’re on the basic taxpayer rate of 20% and claim back £6 of working from home tax relief, you’ll get £1.20 per week back. Per year, the tax relief adds up to:

• £1.20 a week for basic rate taxpayers, or £62.40 a year
• £2.40 a week for higher rate taxpayers, or £124.80 a year
• £2.70 a week for additional rate taxpayers, or £140.40 a year

How to Claim Tax Relief on Working from Home

You can claim this payment in two ways:

• Claim tax relief directly from HMRC with an online form, or
• Your employer can pay it through your salary.

To claim tax relief directly with HMRC, head to their online portal . You’ll first need to answer a first questions online to ensure you’re eligible for the home worker tax relief scheme. Once qualified, you’ll be asked to log into your Government Gateway account with your user ID and password in order to submit your claim directly within the portal.

If you pay your tax with a self-assessment every year, you will need to submit your claim directly within your tax return - you won’t be able to claim the working from home allowance through your online portal.

You can claim tax relief for working from home for up to four tax years. The tax relief you’ll be able to get will depend on your tax rate for the period you’re claiming back and what the eligibility rules were for it as well.

Tax relief for working from home in 2023: What has changed?

The good news is that as remote working becomes more prevalent in the UK, the Government continues to support employees through work from home tax relief schemes.

Eligibility rules to claim back wfh tax relief for the 2022-2023 tax year have changed. You will be able to claim tax relief on working from home is:

• your employer doesn’t have an office, or
• if your job requires you to live far away from the company’s office,

If your employer has an office and/or your employment contract allows for remote working (home working or else) but includes an office as your regular place of work, you will not be able to claim this allowance.

These rules are to stay for remain for the 2023/2024 tax year.

This is significant change from previous tax years, notably 2020-2021 and 2021-2022 tax years. In previous tax years, workers could claim home worker tax relief if their employer requested them to work from home, or if they worked from home more frequently and/or if their employer didn’t pay any increase in costs linked to working from home.

A few final tips to help you claim home worker tax relief

• Keep accurate records of your expenses and maintain receipts for any actual expenses claimed.
• Stay informed about any changes to the tax relief schemes or new initiatives introduced by the government - tax years in the UK start on April 6th every year.
• Consult a tax professional or accountant if you're unsure about your eligibility or how to claim

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Over the last 3 years the number of people in the UK who have started working from home has leapt from 5.7% 2019 to 40% in 2023. 

As you may recall, during the covid pandemic a huge number of working people in the UK were instructed to work from home by their employer and the government. This resulted in higher household bills such as heating, electric and internet for most. 

So to offset some of these incurred costs in 2020 HMRC decided to offer tax-relief of £6 per week for working from home. Which is an increase from the previous figure of £4 per week. 

If you currently still work from home, whether you are employed or self-employed, you may be eligible for certain tax-reliefs. 

For Employees 

When you were ordered to work at home in the coronavirus period employers had the option of paying £6 a week extra tax-free for those days/weeks. However, as many businesses experienced severe financial difficulty they were not able to, or elected not to do so. 

The good news is you can still claim tax relief of potentially up to between £187 and £420 for working from home for the last three years, and in this article we'll explain how. 

4 million people plus have already claimed for the 2020/21 and 2021/22 tax years. And you are also able to claim tax relief of £6 per week for working from home for 2022/23 and coming years - if certain conditions apply to you. 

For the self-employed 

As a self-employed person, you may be allowed to claim more expenses related to working from home than an employee, or director. HMRC allows you to claim relief at a flat-rate of either £10, £18 or £26 per month, depending on the number of hours you typically work from home. And you don’t need to provide any records of your expenses. 

If you can prove that your actual costs are higher than the flat rate, then you may also be able to claim a higher amount. You will, though, need supporting evidence to show that the amount you are claiming is no more than the additional expenses you have actually incurred. And you must be able to prove that you personally pay these costs, and that they are not paid by a partner or spouse.

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Am I eligible to claim? 

Claiming for 2020/21 & 2021/22 (coronavirus) as an employee .

You are eligible to claim working from home allowance for both the 2020/21 and 2021/22 (or just one if you’ve already claimed for the other) tax years if: 

• You were required to work from home for at least a period of the year (for even a minimum of one day) by your employer 
• You had to pay increased costs as an effect of working from home like heating or electricity. (You are not required to supply evidence of this)
• These increased costs have not already been repaid by your employer 

Whether you were employed in the same or different jobs, or multiple part-time jobs, during this period you are still eligible to claim. 

Claims for the working from home allowance can be backdated for up to 4 years, so there is still time to claim for both the 2020/21 tax year and the 2021/22 tax year. 

It’s been confirmed by HMRC that you have until the 5th April 2025 to make claims for 2020/21 and until 5th April 2026 make claims for 2021/22. 

Claiming for 2022/23 and after as an employee 

After the coronavirus pandemic the required criteria is now much stricter. And you can’t claim working from home allowance solely because you are working at home due to coronavirus, even if you have tested positive. Or simply because you are allowed, i.e choose , to work from home and if your employer has an office that is open to you on a full/part-time basis, such as hybrid-working. 

You are eligible to claim working from home tax relief if: 

• Your forced to live at a long distance or out of reach of your office due to the nature of your job 
• The person, business, company or organisation that you work for has no office HMRC has stated that these rules will remain for 2023/24.

Self-assessment 

For employees on higher rates of pay who file self-assessed tax returns the relief for all three years is still available. However, there is an alternative method which involves claiming when you submit your SA form. 

If you are unsure about this or tax in general, speak with our friendly advisors who’ll be happy to explain it.

If you want to claim form the tax years 2020/21 and 2021/22 see these instructions:

Online: To apply for working from home tax relief, complete the 'Other expenses and capital allowances' section in the employment segment. If you have already submitted your 2021/22 tax return, revisit the online platform and modify this section before January 31st, 2024.

Paper: On the full return form you need to complete section 20 and section 2.5 if you're using the short form. You’ll have to download and complete a new tax-return with the word ‘amendment’ written on every page and send it back to HMRC.

Self-Employed 

If you’re self-employed and work at home you are probably entitled to claim tax-relief for part of your work at home costs for all the same things as employees, as well as others like: 

• Mortgage interest 
• Council tax 
• Home insurance 
• Cleaning services/supplies 
• Home maintenance 

Furthermore, you might also be able to claim 100% of costs that are exclusively business related such as: 

• Cleaning of office space if it is exclusive of the cleaning of any other part of your home
• A second phone line used for businesses comms 
• Insurance on your business
• Repairs of your home office and business equipment 
• All business related calls from your home phone 

*If estimating your tax-deductions sounds like a lot of math, try using one Crunch’s free tax calculators and save yourself hours.

How much will you get? 

Currently you will receive tax-relief on £6 per week on your income. This is the same if you are claiming for the tax years during coronavirus, 2020/21 and 2021/22, or just 2022/23. Which will be paid in one lump-sum. 

The exact figure is dependent on your current income-tax rate, but will be equal to one of the following yearly totals: 

• £1.20 a week for a basic 20% rate taxpayer = £62.40  
• £2.40 a week for a higher 40% rate taxpayer = £124.80 
• £2.70 a week for a top 45% rate taxpayer = £140.40  

So if you are claiming for the two coronavirus years and 2023/23 you could receive £421.20. And remember, if you worked at home for just one day during 2020/21 or 2021/22 tax years you can still claim the full amount. 

Self-employed 

The flat rates for self-employed individuals is or businesses are calculated by the number of hours you work at home or by dividing a total claimable expense, like electricity, by the number of rooms in your house (as one is an office): 

• 25 - 50 hours per month - £10 
• 51 - 100 hours per month -  £18 
• 101 hours+ per month - £26 
• *example; £500 annual electric bill in a 5 room house - £100 

As mentioned, you could potentially claim 100% of business related costs - charged directly to your business. 

What if the relief doesn’t cover my extra costs? (employees only) 

If whatever amount that you’re entitled to above doesn’t cover the extra costs you have from working at home as an employee, you can apply to claim for ‘actual expenses’. This requires providing evidence of the actual additional amount of money you were forced to spend as a direct result of working from home. 

You will need to complete a P87 form which allows home workers to claim expenses up to a maximum amount of £2,500. It’s important to point out that you’ll only receive tax relief on the total figure you can claim for. 

And supply the following information:

• Your job title 
• Your employer’s name and PAYE reference 

How to claim tax-relief for working from home as an employee 

You can use HMRC’s microservice to back claim tax-relief for 2020/21 and/or 2021/22 and the current year 2022/23 (the current year separately) by using the government’s microservice on the HMRC website here . It’s quick and easy.

If you want to claim for all three years you can do this by completing the process twice, once for each given period. 

Scroll down to the to button section of the page ‘How to Claim’ and click the green start now button. You’ll need a government gateway ID, if you don’t yet have one you’ll be prompted to create one in this claim process. 

Answer the first couple questions as requested, on the fourth page you’ll be asked which years you want to claim for. Select whichever applies: 

• Just the current tax year 2023-2024 
• Previous tax years 
• Both the current tax year and previous years 

It's worth examining what other work incurred costs you are entitled to claim for as within this process you will be asked if you want to do so. 

You will receive the payment for the full annual amount of £6 per week retrospective tax relief, according to your tax bracket, at the time you are claiming for as a cheque or bank transfer. 

How to claim tax-relief for working at home if you’re self-employed 

To claim as self-employed you need to calculate your expenses and what the amount you can claim as working from home tax-relief is. Then make the claim when you complete your self-assessment. If you are using online accounting software it should probably have a built-in feather for this. 

Try using Crunch’s cutting-edge software with industry-exclusive features to make this efficient, fast and simple. As thousands of very happy clients are already doing!

Claiming tax relief for working from home is fairly simple and not very time consuming. It’s an important financial entitlement that can, even if only to a small degree, reduce the burden of additional expenses that come as a result of home working, for higher earners and those on lower salaries alike.

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Working from home: HMRC’s £125 tax break now harder to claim

As Covid crisis eases, official guidance says people cannot obtain relief if they choose to avoid office

A popular tax break for working from home that gave many people’s finances a small boost during the pandemic has become harder to claim, and most employees will no longer be eligible.

With millions of people back in the office for at least part of the week, experts say you can now claim tax relief for working from home only if you meet strict conditions.

Some commentators are urging employees to check their PAYE tax codes, because if HM Revenue and Customs has included the relief when you are no longer eligible you could potentially end up with a surprise tax bill.

But one bit of good news is that if you were required to work from home but did not get round to claiming, it is not too late. You can still claim for previous years.

Tax relief linked to working from home predates the pandemic – it was introduced almost 20 years ago. However, in 2020 the government relaxed the rules, which meant suddenly millions of people who were forced to work from home during lockdowns were able to claim tax relief worth up to £125 a year.

In autumn 2020, HMRC launched an online portal for employees to make a claim without having to provide receipts or do complicated calculations. And, to make things even easier, eligible workers could claim a full year’s entitlement even if they had to work from home for only one day during the tax year.

Perhaps unsurprisingly, it has been a popular tax break. Millions of people have successfully claimed it, sending the bill for the relief soaring from about £2m a year before the Covid crisis to nearly £500m over the two years of the pandemic, according to reports .Some people were probably expecting they could just claim again.

The tax relief was offered to workers provided they were told by their employer, rather than chose, to work from home, and provided they did not receive home expenses payments from their company.

Once the application was approved, the portal adjusted the individual’s tax code, and they received the tax relief directly through their salary.

Your claim was based on the assumption that you incurred costs of £6 a week while working from home, so you got back the tax that you would have paid on that sum.

For basic-rate taxpayers the relief was worth 20% of the £6: £1.20 a week. Higher-rate taxpayers could claim 40% of the £6: £2.40 a week.

Over the course of the year, this meant people could reduce the tax they paid by £62.40 or £124.80 respectively.

The relief relates to household costs such as gas and electricity, metered water and business phone calls, though under the rules, you can’t claim for the whole bill, “just the part that relates to your work”.

Tax experts say the rules have not changed. Instead the gradual easing of Covid restrictions means that most people’s circumstances have. As a result, HMRC has updated the guidance to make clear that you cannot claim the relief if there is an element of choice in your working from home.

Joanne Walker, a technical officer at the Low Incomes Tax Reform Group, says the rules were relaxed for 2020-21 and 2021-22 in favour of employees, but as of April this year, HMRC was following the rules fully again.

She says that, as before Covid, people can now only claim the tax relief if they met the conditions set out in HMRC’s Employment Income Manual 32760 . These rules are quite strict: for example, it must generally be the case that no facilities for doing your work are available to you on your company’s premises.

Robert Salter, a client tax director at accountants Blick Rothenberg, said recently that employees should check their tax codes to see if HMRC has included the relief. “If this is the case, unless they are still eligible for the relief in 2022-23, they should contact HMRC to get the notice of coding corrected. Otherwise they will have additional tax to pay at the end of the tax year,” he said.

He added that the work-from-home relief was available from 6 April 2022 onwards only if your employer specifically required you to work from home – for example, to stop the spread of Covid or because your job had been “relocated” and was now contractually regarded 100% as a home-working role.

“If, for example, your employer simply now allows staff to work flexibly – ie, being in the office or working from home as it suits each individual – the home office relief ceases to be available for the 2022-23 tax year.”

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Working from home 2024: HMRC tax relief explained

Many of us had to shift gears and work from home at some point throughout the pandemic. In fact, the latest numbers show that 5.6 million people went from the office to their home office (or kitchen table) at some point during 2020. Surprisingly though, only around half made applications for the working from home tax relief. 

At a rate of £6 per week, HMRC working from home allowance might not sound like much. But if you were required to work from home for even just one day during the lockdowns, you could be due for a nice chunk of change in the form of tax relief.

We get it – your employer and HMRC usually handle the tax codes, benefits and financial stuff. It’s normally out of your hands and this sounds like more effort than it’s worth. 

But we’re here to show you just how simple and quick it is to make a claim if you’ve been working from home, and get the working from home tax relief that’s due. 

What is HMRC working from home allowance? 

How to claim the working from home tax relief 2023/24, give your company a friendly nudge.

Through the working from home allowance 2023/24, HMRC offers compensation, in the form of tax relief, for the costs associated with remote employment. You know, all the extra gas and electric bills associated with running a home office, for example.

Effectively, the government reimburses the cost in the form of a tax credit for working from home. 

The money is taken off your current tax bill that’s paid every month, meaning that you’ll keep slightly more of your salary. But if you wait to claim until the end of the tax year, you may receive a straight-up refund in the form of a cheque.

Working from home tax relief backdated

Most of us were required (to put it lightly) to begin remote working in March 2020, which means we’re now onto the fourth year of possible claims. If you missed out on claiming the tax rebate working from home in previous tax years, don’t worry: HMRC allows you to backdate claims. Phew!

Applying for HMRC working from home tax relief 2022-23 and the year before that (since most of us became eligible for WFH tax relief in 2020) could mean you are eligible for up to £280 in total. And just in case you’ve been working from home prior to that, it's good to know that they allow backdating for up to four years. 

As well as Covid-related changes to the working from home allowance, HMRC brought in other measures such as furlough through the job retention scheme. But this all ceased in October 2021. So, the work from home allowance is now one of the only measures still in place that you can make the most of.

Now that there is no longer a government requirement to work from home, like the lockdown, only a small percentage of the UK’s workforce is actually eligible to apply for tax relief in the 2023-24 tax year. But this doesn’t mean you should miss out on previous years. 

Luckily, the deadline has not yet passed to make a backdated claim for working from home tax relief 2021. HMRC has confirmed that workers have until April 2025 to claim for the tax year ending in 2021, and 2026 for this current year. 

To apply for working from home tax relief, you need to follow the steps on the government’s website. There are two different times to claim: at the end of the tax year or during the tax year. 

Here’s how to claim working from home tax relief 2023/24:

• Check you are eligible by answering the questions on the government portal
• Create a government gateway ID. To do this, you’ll need your national insurance number, alongside one of the following: recent payslip, P60 or passport
• After signing in, select the date that you began working from home (note that you can put a date from a previous year and receive the tax relief together)
• Simply wait for your cheque to arrive from HMRC

Another important thing to note: HMRC allows you to claim tax relief on other expenses and extra costs too, such as business travel . But they do expect receipts and documentation. In order to apply, fill out a P87 working from home form.

Questions? We’ve got you covered. Here are some of the most common questions regarding tax relief for remote workers.

Can I claim working from home tax relief 2023/24 tax year?

Short answer: Yes, but beware that the eligibility criteria has changed. Even if you were able to claim during 2021, there is no guarantee that you will qualify in 2023/24. 

Who is eligible for tax relief?

The main purpose of regulation around this tax relief is to prevent double claims. This means that if your employer has already paid for or reimbursed the extra costs of working from home, applying for tax relief would be slightly cheeky on top. 

Moreover, you cannot have chosen to work from home, it must be a requirement. For example, if you are required under government restrictions, or there are no facilities available for you to complete your work at the office. 

This applies to those claiming working from home tax relief Scotland, and working from home tax relief Wales, along with those in Northern Ireland. Unfortunately, working from home tax relief Ireland is totally different since it is not part of the UK. 

Important: You don't need to work from home full time. Even one day is enough to claim for the whole year, as long as your employer required it, and it wasn't just a choice.

What can you claim the tax relief for?

As part of HMRC working from home scheme, the compensation can be claimed for extra household costs that have occurred as a result of your work. While this includes the electricity and gas bills associated with using your home as an office, tax relief also exists with regard to business phone calls, for example. 

Remember that HMRC specifies that you cannot apply for expenses that affect your private life, even if there is a crossover. Unfortunately, this means no claiming for meal deals. 

How much working from home tax relief to expect?

The amount of tax relief you can receive is proportionate to the tax you pay. 

Basic rate taxpayers receive 20% of the £6 per week figure, which is £1.20. Across one year, this adds to £62.40.  

Higher rate taxpayers also receive their equivalent tax bracket back in the form of tax relief, which is 40%. This is £2.40 per week or almost £125 per year. Finally, those who earn above £100,000 and pay an additional rate tax of 45%, are eligible for £2.70 per week, which leads to £140.40 per year.  

What if it doesn’t cover the cost?

Due to the sheer number of claims processed over the past two years, it would be virtually impossible for HMRC to deliver tax relief on a case-by-case basis. This means that for most of us, £6 per week is a hard limit. 

Those who would like to cover extra needs, such as money you’ve spent on uniforms, tools, or professional subscriptions have the option to do so. To do this, fill out a P87 working from home form. 

In this case, evidence like receipts and other documentation is required. While keeping track of all your paper receipts may feel outdated (not to mention bad for the environment), it’s what HMRC requires to process your transactions. 

Usually, it’s the finance team at your organisation that handles employee expense claims, receipt reconciliation and reimbursements. But if this isn’t the first time that you’ve found yourself picking up the slack with expense claims, it might be time to nudge your company into the 21st century. 

Never lose a receipt again

We know just how difficult it is to try and file away all of your receipts, let alone how time-consuming it is to organise them when it comes to making a claim. But why should that mean that you miss out on the tax relief that you are owed? 

With Pleo’s receipt scanner , you’ll get a notification on your phone as soon as the transaction goes through the till. Simply scan your receipt there and then in order to lock it in and when you’re ready to make a claim, watch your organisational worries disappear. 

And when your cheque comes in, go ahead and order that ergo chair you’ve had your eye on.

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Working From Home Tax Relief: The Ultimate Guide

Since the pandemic, millions of workers in the UK have moved towards remote working from home, costing the Treasury nearly £500m in WFH tax breaks. As a result,   the working from home tax relief rules are changing .

Now that the worst of the pandemic is over, the new regulations will only allow HRMC claims in specific circumstances. Due to these changes, not every employee working from home can claim this tax benefit as they did during the pandemic.  W orkers can now only claim this tax relief if they met the conditions that existed before COVID-19 . 

This update only includes people who don’t have the chance to decide to work from home and can’t attend the office because their employer can’t provide the facilities to do so.

In today’s guide, we’ll explore the different aspects of working from home tax relief, including: 

• How has the pandemic affected work from home tax policies?
• Who is eligible for the work from home tax rebate?
• How to claim work from home tax deductions in 2023
• What’s your responsibility as an employer working with a remote team?
• Using Factorial to effectively manage a remote team

How Has the Pandemic Affected Work From Home Tax Policies?

The COVID-19 pandemic has had a significant impact on work from home tax policies in the UK. Before the pandemic, tax relief was only available for those who were required to work from home due to the nature of their job or the lack of suitable facilities. 

However, in response to the pandemic, the UK government introduced temporary changes to the rules to encourage people to work from home where possible.

For the 2020/21 and 2021/22 tax years, employees were able to claim tax relief on additional household costs incurred as a result of working from home due to COVID-19, even if they did not meet the usual eligibility criteria . This allowed a large number of workers to claim tax relief, with over 3 million claims made in the 2020/21 tax year alone.

Update on Remote Work Tax Relief Criteria

However, these temporary concessions came to an end on April 6, 2022. And now, the rules have returned to their pre-pandemic state . This means that tax relief is once again only available to those who must work remotely . But those who simply choose to do so are not eligible for this tax relief.

While this change may be disappointing for some workers who have been able to claim tax relief in the past, people teams need to understand the current rules to better manage virtual teams . It is also worth noting that while the temporary concessions have ended, employees are still able to backdate their claims . So it is worth checking if they are eligible to claim for previous tax years.

Who Is Eligible for Tax Relief on Working From Home?

According to Government reports , 30% of the UK workforce worked remotely at least once a week in 2022, and 8% of UK workers did not enter the office for the whole of 2021. But not all of those who are working remotely today are entitled to receive tax relief.

In order to be eligible for this benefit, employees must meet certain criteria. The crucial requirement for eligibility is that the employee had no choice but to work from home due to COVID-19. This means that if the employees had the option to work from home but this was not a requisite, they will not be eligible for the rebate .

To be eligible for the work from home tax relief, employees must meet the following criteria:

• They must be required to work from hom e by their employer due to the pandemic, without having the choice to return to the office .
•  They must not be reimbursed for additional household costs directly by their employer.
•  They must incur additional household costs as a result of working from home, such as increased energy bills or internet costs.

Exceptions When Employees Might Still Be Entitled to Tax Relief

There are certain situations in which an employee may fit into the work from home tax relief, even if they do not meet the above criteria. These include:

• If their job requires them to live far away from their office.
•  If their employer does not have an office.
•  If there are no appropriate facilities available for the employee to perform their job on the employer’s premises.

It is important to highlight that the work from home tax rebate is only available to employees who have not received expenses directly from their employer to cover the additional costs of working from home. Therefore, if the organisation managed the costs related to working from home, then employees can’t receive this tax benefit.

In the case of hybrid working models , where a team member works from home and the office on a regular basis, the eligibility for the rebate will depend on the specific circumstances of the work conditions.

If the employee must still work from home due to the COVID-19 pandemic and incurs additional costs as a result, they may be eligible for tax relief. However, if the staff chooses to work from home or has the option to do so, they will not be eligible for this benefit.

How to Claim Tax Relief on Working From Home

As HR managers and business owners, it is important to be aware of the updates in the work from home tax policies. This is how you can properly support and plan for remote teams. With the departments needing to adapt to the new post-pandemic workplace,  it is likely that many employees will continue to work from home in the coming year .

According to HMRC’s guide , this is what your employees need to do to claim tax deductions:

• Check eligibility: The first step is to determine whether the worker is eligible to claim tax relief on home working expenses. Generally, team members are only eligible if they have been required to work from home due to circumstances such as living far from the office or their employer not having an office.
• Calculate the amount of tax relief: Workers can claim tax relief on either a fixed amount of £6 per week or the exact amount of their additional costs above this amount.
• Submit the claim: Once the employee has calculated the amount of tax relief they are entitled to, they can submit their claim through the HMRC online portal . They will need to create a Government Gateway ID if they do not already have one, which requires their National Insurance number and a form of ID.
• Receive tax relief: If the claim is approved, the employee’s tax code will be adjusted, and they will receive the tax relief directly through their salary.

It is important to note that workers can backdate tax claims up to 4 years for previous work. In this case, they will receive a lump sum payment for any successful backdated claims.

What’s Your Responsibility as an Employer Working With a Remote Team?

Access to remote work increases employee well-being, productivity, innovation, and inclusion . A recent report found that innovation increased by 63%, work engagement by 75% and organisational commitment by 68% in these instances. But still, what brings the future of work requires different strategies to keep the team working as it should.

As a people team manager, you must ensure that remote workers have the resources to carry out their job duties .

But providing the necessary equipment and resources is just the first step. Building a sense of community and connection within a remote team is also crucial for employee retention and job satisfaction. You can achieve this by holding regular check-ins, team meetings, and providing opportunities for social interaction and team building events.

According to a survey by FlexJobs , the top three reasons why people prefer to work remotely are related to having a better work-life balance and having more control over their work environment. However, feeling isolated and disconnected from the team was a major challenge for remote workers.

By fostering a sense of community, you can help your team to combat feelings of isolation and improve work motivation .

How to Support Your Remote Team

Some ways to support your remote team and build community include:

• Providing regular opportunities for virtual team building and socialisation, such as virtual happy hours or team lunches.
• Encouraging open and frequent communication, including regular check-ins and team meetings.
• Offering support and resources for mental health and well-being.
• Being flexible and understanding of the unique challenges that remote workers may face, such as balancing work and personal responsibilities or navigating time zone differences.
• Provide training and resources to help team members understand their legal rights , including the work from home tax benefit. This not only helps them to claim what they are entitled to but also shows that you value their well-being and are willing to support them.
• Encourage the use of collaboration tools and platforms that facilitate communication and teamwork. This can help to foster a sense of connection and inclusivity.
• Consider offering additional employee benefits that are specific to remote workers, such as reimbursements for home office expenses or subscriptions to productivity tools.
• Be proactive in addressing any challenges or issues that may arise for remote team members. This could include providing support for technical difficulties or offering flexible work arrangements to accommodate personal circumstances.

Overall, as a remote team manager, it is important to provide the necessary equipment and resources. But also to create a sense of community and connection, and to prioritise the health and safety of your employees. By doing so, you can help to retain top talent and ensure the success of your team.

How to Use Factorial to Effectively Manage a Remote Team

One of the biggest challenges of managing a remote team is staying organised and on top of tasks. But here’s Factorial to help with that. You can support your employees in claiming tax benefits and also provide the necessary equipment to work from home.

Here are some ways that Factorial remote work software can help you manage your virtual team:

Time Tracking

Use Factorial’s time-tracking software to ensure that your employees are registering their hours and keeping up to date. This can be done through the computer or mobile app, and even includes a geolocation clock-in to know where your employees are working.

Document Management

Keep all of your company documents organised and easily accessible with Factorial’s document management system . You can store, ship, organise, edit, and approve all types of documents, and even use the electronic signature feature for legal documents.

Time Off Management

Easily monitor who is in the office and who is away with Factorial’s time-off management solution. View all teams and absence types in one place and use the one-click holiday management feature to easily track employee absences.

Internal Communications

Use Factorial’s HR software to effectively communicate with your remote team and keep them informed about important news and company safety measures.

Employee Performance Monitoring

Keep track of your team’s performance with Factorial’s automated and personalised assessments. Use notifications and questionnaires to stay up to date on employee progress and assign tasks to ensure that your team is staying on track.

Hiring and Onboarding

Even while working remotely, you can still hire and onboard new employees with Factorial’s hiring and onboarding tools. Customise the steps in the process and use the applicant tracking system to manage your selection and recruitment process.

In addition to these features, Factorial also offers a fully personalised dashboard and integrations with job portals. This makes it easy to attract top talent and offer remote working positions.

Overall, Factorial is a valuable tool for managing a remote team and ensuring that your employees can claim tax benefits. With its various features and integrations, it can help streamline your HR processes and keep your team organised and efficient.

👉 Start now and try it for free for 14 days .

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Working from Home Tax Relief – what you need to know

Homeworking has become the norm for millions of people following the pandemic. But the rules on claiming tax relief for additional household costs you incur when working from home have changed. So read on to find out if you’re still eligible to claim up to £140 per year and whether can you still backdate your claim.

What is the Working from Home Allowance?

The government introduced working from home tax relief in 2003 to allow for anyone working from home to claim back some tax to help cover the increased household costs associated. This used to add up to a £4 a week tax-free sum.

However, because the pandemic forced millions more people to work from home, the government upped the amount to £6 a week. And the rules were also temporarily changed so you didn’t need to prove that you worked from home regularly. Instead, it meant you could claim up to £140 per year even if you only worked from home for one day.

But with all covid-related financial measures now removed, millions of workers are now back in the office either full time or part time. And in response, HMRC has updated its guidance for the 2022-23 tax year and introduced criteria that makes it harder to get a tax rebate for working from home.

Working from home? See if a garden room could help you create the perfect home office.

Working from home tax relief: What has changed?

The eligibility criteria for the working from home tax rebate is different depending on which tax year you are claiming for.

For the 2020-2021 and 2021-2022 tax years you’ll need to meet the following criteria to be eligible for working from home tax relief. You can claim for these tax years if:

• Your employer told you to work from home.
• Your household costs increased because of working from home.
• And your employer did not pay you expenses to cover the extra costs associated with working from home.

You can backdate claims for the working from home allowance, so there is still time to claim for both the 2020-21 tax year and the 2021-22 tax year.

However for the 2022 – 2023 tax year the working from home tax relief eligibility rules have changed. The new rules state you can’t claim tax relief if you ‘choose to work from home’. This includes if your contract lets you work from home some or all of the time, if you work from home because of Covid or if your employer has an office, but you cannot go there sometimes because it’s full.

But some people will still be able to make a claim with the HMRC working from home allowance applying if your job requires you to live far away from your office. Or if your employer doesn’t have an office.

You can’t claim working from home tax relief if you are self-employed . Instead, though you can include some expenses on your tax return.

Need an independent financial adviser or tax advice? Find a local adviser and book your free initial consultation through our partners at Unbiased. 

You don’t have to make life’s big financial decisions alone. Get the right IFA for you today with our partners at Unbiased.

How to apply for the working from home allowance

HMRC have set up a specific online portal where you can claim working from home tax relief. You can find it at www.gov.uk/tax-relief-for-employees/working-at-home .

The portal starts off by asking you a series of question to check you are eligible for the working from home allowance. And it states clearly that different eligibility criteria apply to different tax years.

After that you will need your Government Gateway user ID and password to make your claim. If you don’t already have a user ID, it takes a few minutes to create one.

Once you’ve logged in, you need to give the date of when you started working from home. If this was the start of the first lockdown back in 2020, the date will be 23 March 2020. You can then claim the working from home tax allowance for the entire 2020-21 tax year plus the two weeks before. This is because the new tax year starts on 6 April, but lockdown started on 23 March. You can also claim for the 2021-22 tax year at the same time and the 2022-2023 tax year if applicable.

If you pay your tax via self-assessment, you can’t claim the working from home allowance through the portal. Instead, you’ll need to apply via your tax return.

How much tax relief can I claim?

The working from home allowance is designed to cover the extra costs you incur when you work from home rather than heading off to the office. It can be tricky working out exactly how much of your heating or electricity bill is associated with the time you were at your desk so there is essentially a flat rate of £6 a week you can claim.

You can get this payment in two ways:

• Your employer can pay it : You can get an extra £6 a week tax-free through your salary.
• You can claim tax relief on it from HMRC : If your employer won’t pay you the allowance, but you have or had extra unavoidable costs due to working from home, you can deduct the amount from your taxable income. You then claim tax relief on it from HMRC.

Tax relief on £6 a week adds up to:

• £1.20 a week for basic rate taxpayers, or £62.40 a year
• £2.40 a week for higher rate taxpayers, or £124.80 a year
• £2.70 a week for additional rate taxpayers, or £140.40 a year

If your home working costs add up to more than £6 a week you can claim tax relief for a larger amount. However, you will have to provide evidence to the taxman of what your costs were, such as receipts, bills or contracts. You must also prove these costs were directly connected to your employer’s requirement for you to work from home.

Need help with your tax return? Find an accountant and book your free initial consultation through our partners at Unbiased. 

What can I claim working from home tax relief for?

You can only claim for things to do with your work, such as:

• business phone calls
• gas and electricity for your work area

If you need an accountant to help with your tax return, our partners at Unbiased can match you with the right adviser .

Can I still make a backdated claim?

HMRC says it will continue to accept backdated claims for people who have not yet claimed stating that taxpayers will receive a ‘lump sum payment’ for any successful backdated claims. It also stated that taxpayers have until the 5 April 2025 to make claims for 2020-21 tax year, and until 5 April 2026 make claims for 2021-22.

If you want to make a backdated claim you can do this via HMRC’s Working from Home Allowance portal.

How will I get the money?

If you are claiming for 2022-2023 tax year HMRC will adjust your tax code, and you’ll receive the tax relief through your salary.

And tax experts are urging employees who have previously made a claim to check their PAYE tax codes because if HMRC has included the relief and you are no longer eligible then you could get a surprise tax bill.

With more than 27,000 regulated financial advisers, our partners at Unbiased can match you with the right adviser. Find a financial adviser today.

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End of working from home? Your rights to flexible working explained

• Thursday 9 May 2024 at 7:14pm

A growing number of employers are asking their staff to return to working in the office as companies edge further away from post-Covid attitudes.

Working from home has become a popular choice for millions of people around the United Kingdom, with many now used to a hybrid model.

So, with a return to the office being mooted in a number of industries, what are your rights if you wish to submit a flexible working request?

ITV News spoke to an employment law expert to answer the key questions.

What are the rights of an employee?

Earlier this year, all employees in England, Wales and Scotland gained the legal right to request flexible working. Different flexible working rules exist in Northern Ireland.

Consequently, all employees have the legal right to request flexible working, and can ask for a change to the following:

The number of hours they work

When they start or finish work

The days they work

Where they work

What must an employer do?

Employers are required to deal with a flexible working request in a "reasonable manner", according to gov.uk .

For example, this could include evaluating the pros and cons of an application, or discussing potential alternatives to a request.

Karen Baxter, an employment law partner, told ITV News that an employer has two months to reach an outcome "unless a longer period is agreed".

Flexible working requests can be refused if an employer has a good business reason for doing so. There are eight possible reasons as to why this could be the case, including:

Burden of additional costs

Detrimental effect on ability to meet customer demand

Inability to reorganise work among existing staff

Inability to recruit additional staff

Detrimental impact on quality

Detrimental impact on performance

Insufficiency of work during the periods you propose to work

Planned structural changes

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know…

What if I'm in disagreement with my employer?

Ms Baxter advised that in any potential dispute, the more "conversation and discussion" that an employee can have with an employer the better.

She added: "There is a massive difference in the sort of likelihood of succeeding in a flexible working request which just says 'this is what I want to do' as compared to one that says 'this is what I want to do, this is how I think it might affect the business, but this is how I think we can address that'.

"A request which shows that the employee thought about it from the company's perspective from the off, it's much harder to say no to those sorts of requests."

What does a 'reasonable manner' mean?

Ms Baxter said a reasonable manner could be reduced to an employer dealing with a request in "good faith, being honest about the reasons [and] not giving a misleading response as to why something has or hasn't been agreed, and progressing it without an unreasonable delay".

Can you appeal a decision?

Ms Baxter said it is possible to bring a complaint to an employment tribunal when contending that your "flexible working request hasn't been properly considered, the employer hasn't followed the process or has relied on an unfair reason to reject my request".

Employees can take an employer to a tribunal hearing if the latter does not handle a request in a reasonable manner.

Anyone looking to bring forward a tribunal claim should be aware that you will need to contact the Advisory, Conciliation and Arbitration Service (ACAS) in advance.

Have you heard our new podcast Talking Politics? Every week Tom, Robert and Anushka dig into the biggest issues dominating the political agenda…

Politics latest: Court ruling 'blows PM's claims about Rwanda plan out of the water'

Rishi Sunak has warned voters the next five years "will be some of the most dangerous yet", and only the Tories have plans to keep them safe. Meanwhile, the government may have yet another legal battle on its hands over its attempts to tackle illegal migration.

Monday 13 May 2024 23:00, UK

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Thanks for following on an extremely busy day in Westminster.

We'll be back from 6am, but until then, here are the headlines:

In a dramatic knife-edge vote, MPs have voted that there should be no hiding place for suspected Commons sex pests.

Former prime minister Theresa May led a small group of eight Conservatives voting with Opposition MPs to defy the Commons Leader Penny Mordaunt.

To the fury of many Opposition MPs, Ms Mordaunt wanted MPs accused of serious sex or violent offences to be barred from parliament only when they’re charged.

It was officially a free vote. But the vast bulk of MPs voting to delay a ban until a charge were Conservatives, including several Cabinet ministers.

That was brave, so close to a general election. Surely those MPs who voted against a ban upon arrest will be attacked by their political opponents at the election for being soft on suspected sex pests?

The timing of the vote was perhaps unfortunate, coming amid renewed controversy earlier this week over sex pest Charlie Elphicke, the former Conservative MP who was jailed for sex offences.

At the weekend his ex-wife Natalie, who defected from the Conservatives to Labour last week, was accused of lobbying a former justice secretary, Sir Robert Buckland, on his behalf, an allegation she dismissed as "nonsense".

And despite missing the weekly meeting of the parliamentary Labour Party earlier, Ms Elphicke duly voted with her new colleagues for a ban which would have almost certainly penalised her ex-husband had it been in force.

After the vote, leading supporters of the arrest ban were jubilant and stunned by the closeness of the vote. “Incredible!” Labour’s Stella Creasy told Sky News. Mr Rees-Mogg, however, condemned the proposal as a “power grab”.

It’s a historic vote. It doesn’t matter how close it was. Accusers will argue they’re now better protected. And MPs who supported the tougher ban argue that it brings the Commons into line with other workplaces.

Well, up to a point. MPs still have many perks and privileges that other employers and employees don’t. And Parliament still has a long way to go before its working practices and grievance procedures are brought fully up to date.

As we reported earlier, MPs today backed a proposal that would allow parliament to ban those from the estate who have been charged with sexual or violent crimes.

The amendment was to "leave out that a charge needs to be made for risk-based exclusion to apply" on the parliamentary estate.

This proposal, tabled by the Liberal Democrats, passed by 170 votes to 169.

Reacting to the win, MP Wendy Chamberlain said: "This is an important step towards making parliament a safe and modern place to work.

"It is not about the guilt or innocence of any individual MP, but about safeguarding.

"It's really important that parliament is just as safe as any other workplace and that everyone is held to account by similar rules."

By Alexandra Rogers , political reporter

The government has scrapped plans that critics argued would have "criminalised" homelessness following a backlash from Conservative MPs.

The Criminal Justice Bill - which originally contained provisions to target "nuisance begging" - has now been watered down by the government to quell a mounting rebellion of about 40 backbenchers.

Homelessness charity Crisis welcomed the changes but warned the "premise of the proposed laws remains the same".

MPs had raised objections to the bill's stated aim of combatting "nuisance begging", which could have targeted people sleeping in a doorway, those creating "excessive smell" or those who are "looking like they are intending to sleep on the streets".

The original version would also have given police or local authorities the power to issue "nuisance begging directions" to move people on, with a failure to comply potentially resulting in a month in prison.

You can read more from Sky News below:

The Sky News live poll tracker - collated and updated by our Data and Forensics team - aggregates various surveys to indicate how voters feel about the different political parties.

With the local elections complete, Labour is still sitting comfortably ahead, with the Tories trailing behind.

See the latest update below - and you can read more about the methodology behind the tracker  here .

A landmark parliamentary inquiry into traumatic childbirths has called for an overhaul of the UK's maternity services after finding poor care is "all-too-frequently tolerated as normal". 

The report calls for a new maternity commissioner who will report to the prime minister, better staffing levels on maternity wards, and for mothers to be listened to more.

On the Sky News Daily, Matt Barbet speaks to campaigner and mother-of-two Tinuke Awe about her experiences of giving birth, and is joined by Sky correspondent Laura Bundock to find out what the government plans to do to address the issues raised in the report.

By Connor Gillies , Scotland correspondent

The police investigation involving Nicola Sturgeon's husband is "moving on" with prosecutors to receive a file within weeks, Scotland's most senior officer has told Sky News.

The former first minister and SNP leader's spouse, Peter Murrell, has been charged in connection with embezzlement of party funds.

In her first interviews since taking on the UK's second biggest police force, Chief Constable Jo Farrell insisted her officers are "objective" but refused to be drawn on whether the long-running probe will end imminently.

The investigation, dubbed Operation Branchform, was launched in July 2021 after officers received complaints about how SNP donations were used.

There were questions about more than £660,000 raised for a second Scottish independence referendum campaign.

In January 2023, Rishi Sunak made five promises.

Since then, he and his ministers have rarely missed an opportunity to list them. In case you haven't heard, he promised to:

• Halve inflation • Grow the economy • Reduce debt • Cut NHS waiting lists and times • Stop the boats

See below how he is doing on these goals:

Over in the Commons, and MPs are voting on a number of proposals that would allow parliament to ban those from the estate who have been charged with sexual or violent crimes.

The result of one particular amendment has just been confirmed.

It proposed to "leave out that a charge needs to be made for risk-based exclusion to apply" on the parliamentary estate.

Initially, a House of Commons commission proposed a risk assessment would take place on whether an MP should be prevented from attending the parliamentary estate if they were arrested on suspicion of committing such an offence - not only if they were charged.

However, MPs have just voted in favour of the proposal to reinstate the original intention of the policy.

The vote was extremely close - 170 to 169.

As we reported earlier ( see 19.46 post ), MPs are tonight voting on proposals that would allow parliament to ban those from the estate who have been charged with sexual or violent crimes.

But concerns have been raised they have been watered down.

Labour MP Jess Phillips has argued: "Exclusion at the point of charge sends a clear message to victims that not only will we not investigate unless a victim goes to the police, but we won't act unless they're charged, which happens in less than 1% of cases."

A series of amendments are being voted on tonight - including one that would revert the proposal back to that lower threshold of an arrest.

We'll bring you the results of the votes later.

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• Self Assessment

300,000 file tax returns in the first week of the tax year

300,000 early birds file their Self Assessment tax return in the first week of the new tax year.

Almost 300,000 Self Assessment customers filed their tax return in the first week of the new tax year, almost 10 months ahead of the deadline, HM Revenue and Customs ( HMRC ) has revealed.

Customers can file their Self Assessment returns for the 2023 to 2024 tax year between 6 April 2024 and 31 January 2025.

Almost 70,000 people filed their return on the opening day this year (6 April) and HMRC is encouraging people to do it early and not to leave it until January.

Visit GOV.UK to find out more about Self Assessment and how to file a tax return.

By filing tax returns early, people can take their time to complete their returns – making sure the information is accurate and avoiding the stress of last-minute filing.

It can also help with budgeting and helping spread the cost of their tax bill. Customers can set up a budget payment plan to make weekly or monthly direct debit payments towards their next Self Assessment tax bill.

Refunds of overpaid tax will be paid as soon as the return has been processed. Customers can also check if they are due a refund in the HMRC app.

In recent years, HMRC has seen more and more customers file their tax returns early. Last year, more than 246,000 people submitted their Self Assessment between 6 and 12 April 2023.

Myrtle Lloyd, HMRC ’s Director General for Customer Services, said:

Filing your Self Assessment early means people can spend more time growing their business and doing the things they love, rather than worrying about their tax return. You too can join the thousands of customers who have already done their tax return for the 2023-24 tax year by searching ‘Self Assessment’ on GOV.UK and get started today.

HMRC has updated guidance on filing tax returns early and help around paying tax bills on GOV.UK.

Anyone who is new to Self Assessment and thinks they might need to complete a tax return for the 2023 to 2024 tax year can use the Self Assessment online tool to check whether they need to register for Self Assessment and submit a return.

People may need to complete a tax return for the 2023 to 2024 tax year and pay any tax owed if:

• they are a self-employed individual with an income over £1,000
• they have received any untaxed income over £2,500
• they are renting out one or more properties
• they claim Child Benefit and they or their partner have an income above £50,000
• they are a partner in a partnership
• their taxable income earned from savings and investments is more than the £10,000 personal savings allowance
• their taxable income earned from dividends is more than £10,000
• they have paid Capital Gains Tax on assets that were sold for a profit above the Capital Gains threshold

A full list of who needs to complete a tax return is available on GOV.UK.

Pensioners are required to pay Income Tax on any taxable income, including their pension income, above their Personal Allowance threshold. There are different ways to pay any tax owed, depending on the individual’s circumstances, including:

• if they already complete a Self Assessment tax return, they will need to report and pay via this route
• if they have a PAYE tax code, HMRC will automatically collect any tax through their tax code

Alternatively, if a pensioner does not already pay tax via Self Assessment or PAYE, HMRC will send them a Simple Assessment summary. The Simple Assessment will tell them how much Income Tax they need to pay and the deadline – usually by 31 January following the end of the tax year. HMRC produces the Simple Assessment from the information it already holds so people do not need to do anything - there is no form to complete. More information about Simple Assessment is available on GOV.UK.

It is important that customers let  HMRC  know if there are any  changes in details or circumstances  such as a new address or name, or if they are no longer self-employed or their business has closed. They should not assume someone else will update  HMRC  on their behalf. If customers  no longer need to do Self Assessment , they will need to tell  HMRC . There are videos on YouTube that explains how to stop Self Assessment.

Criminals use emails, phone calls and texts to try to steal information and money from taxpayers. Before sharing their personal or financial details, people should search ‘ HMRC phishing and scams’ on GOV.UK to check the sender or caller is genuine.

Customers should never share their HMRC sign-in details. Someone could use them to steal from them or claim benefits or a refund in their name.

Further information

Breakdown of filing data:

*weekend days

To deal with increasing demand we’re enhancing and expanding our digital services to give customers the quick and easy ways to manage their tax affairs that they expect. Our helpline and webchat advisers will always be there to support those who are vulnerable, digitally excluded, or have complex tax affairs.

The High Income Child Benefit Charge threshold increased to £60,000 from 6 April 2024, which will apply to tax returns for the 2024 to 2025 tax year.

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