HMRC issues new warning to people claiming tax break for working from home this year

For the past two years, people working from home have enjoyed a tax break to help with increased energy usage.

Since the start of the first coronavirus lockdown in March 2020, HM Revenue and Customs (HMRC) has been encouraging employees who have been asked to work from home by their employer to claim a tax break to help with higher energy costs.

Workers across the UK only had until the end of the financial year on April 5 to claim the allowance, worth up to £125 in total for the 2020/21 and 2021/22 tax period, under the amended eligibility rules.

However, the GOV.UK guidance for claiming tax relief for working from home has now changed for expenses on or after April 6, 2022, and could result in prosecution if they are not followed correctly.

Claiming tax relief on or after April 6, 2022

New guidance on GOV.UK states: “You can claim if your employer has not already paid your expenses and you have additional household costs as a result of working from home.”

It adds: “To claim tax relief, you cannot have just chosen to work from home.”

And the warning is clear: “You must ensure you meet the rules for claiming, as you may be prosecuted if you deliberately give incorrect or misleading information.”

To claim for the new tax year 2022/23, one of the following must also apply:

  • there are no appropriate facilities available for you to perform your job on your employer’s premises
  • the nature of the job requires you to live so far from the employer’s premises that it is unreasonable for you to travel to those premises on a daily basis
  • you are required, under government restrictions, to work from home
Categories: HMRC

by Admin

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