Navigating the updated working from home allowance rules

In response to the Covid-19 pandemic, the Government temporarily relaxed the rules surrounding the employee working from home (WFH) allowance.

For the 2020-21 and 2021-22 tax years, employees could claim £6 per week (£312 annually), even if they only worked from home for a single day within the tax year. Claiming this relief was a simple process on a tax return.

However, from 6 April 2022 (2022-23 tax year), more stringent conditions must be met in order to claim the WFH allowance. If you are yet to complete your 2022-23 tax return, then you need to bear this rule change in mind to avoid falling foul of the updated regulations.

Working from home conditions:

You may be eligible to claim tax relief for additional household costs if you’re required to work at home for all or part of the week.

Who can claim tax relief?:

You can claim tax relief if you’re obligated to work from home due to circumstances such as:

• Your job necessitating that you live a considerable distance from your office.
• Your employer not having a physical office.

Who cannot claim tax relief?:

You’re not eligible to claim tax relief if you voluntarily choose to work from home. This includes situations where:

• Your employment contract allows you to work from home some or all of the time.
• You’re working from home due to the coronavirus (COVID-19) pandemic.
• Your employer has an office, but you’re unable to attend at times because it’s at full capacity.

As you complete your 2022-23 tax return, it’s essential to determine whether you meet the updated eligibility criteria for the WFH allowance.

Keep these guidelines in mind, and ensure you claim the relief only if your circumstances align with the specified conditions.

For detailed advice, tailored to your unique circumstances, please contact us now.