Are the tax breaks for working from home being axed in April?
Working from home: Are the tax breaks being axed in April?
To help employees work from home during the pandemic, employees have been able to claim a flat rate expense of £6 per week (or £312 per year) against their income - as a contribution to the additional costs of working from home, such as increased utility bills.
Depending on the top rate of Income Tax you pay, this relief could save you between £62 and £140 per year.
It can be claimed for both 2020/21 and 2021/22 if an employee has been required to work from home at some point during each tax year. However, now that employees are no longer required to work from home, we are expecting it to be significantly reduced from April 2022.
Expect to only be able to make claims for the actual number of weeks spent working from home as opposed to the more generous rules for 2020/21 or 2021/22.