EXPENSES - 28.06.2022

Working from home expenses

Homeworking expenses. For the 2020/21 and 2021/22 tax years HMRC allowed employees (including directors) who were required to work from home because of the pandemic to claim a tax deduction of £6 week towards their additional household costs. This relaxation of an existing concession came to an end on 5 April 2022. Consequently, HMRC has made changes to some but not all employees’ tax codes to remove the working from home deduction.

Check your code. Employees who received the allowance through an adjustment to their 2021/22 code but who don’t complete annual self-assessment returns have had the allowance removed for the current tax year. Conversely, tax codes for employees who received the allowance and claimed it on a self-assessment return still include it. Consequently, some employees who are entitled to the allowance for the current year aren’t receiving it while others are receiving it who aren’t entitled to it.

Tip. Check if you’re entitled to the working from home deduction and then look at your tax code; ask HMRC to remove or add it as required (see The next step ).

For guidance on the working from home deduction, visit https://www.tips-and-advice.co.uk , Download Zone, year 22, issue 19.

Following the end of the relaxed rules for claiming the working from home tax deduction HMRC has adjusted some 2022/23 tax codes but not others. Check if you’re entitled to the deduction and ask HMRC to amend your code if necessary.

© Indicator - FL Memo Ltd

Tel.: (01233) 653500 • Fax: (01233) 647100

subscriptions@indicator-flm.co.ukwww.indicator-flm.co.uk

Calgarth House, 39-41 Bank Street, Ashford, Kent TN23 1DQ

VAT GB 726 598 394 • Registered in England • Company Registration No. 3599719