The Government is scrapping working from home tax relief from April 5
Workers have been cautioned they could lose up to £140 following an April cut-off point. The Government is poised to axe working from home (WFH) tax relief from the next financial year.
As of early 2025, approximately 39 per cent of British workers were entirely remote. This would qualify them to claim on costs such as gas, electricity, and business calls.
For higher earners, these could amount to as much as £140.40 annually. This scheme is due to conclude next month, however, until April 5, it remains possible to submit backdated claims dating as far back as 2021/2022.
With this in mind, Olya Yakzhina, head of people and culture at Work.Life, encouraged Brits to verify whether they qualify for tax relief before the deadline. She clarified that if you work from home in a completely remote role, then you are entitled to the WFH tax relief payment.
However, if your contract permits you to work-from-home but you’re obliged to attend the office under a hybrid working arrangement, then you cannot claim tax relief. Even if you’re unable to access the office because it is crowded or at capacity, you’re still not permitted to claim for this – only entirely remote workers can claim.
How much can you claim a year?
According to GOV.UK, eligible remote workers are allowed to claim tax relief on up to £6 a week – which will be scrapped in the new tax year. This doesn’t mean you can claim the flat rate of £6 a week, but the tax relief on that figure depending on your tax band.
For example, workers who earn £50,270 or less a year can claim 20 per cent of the £6 total, which works out at £1.20 per week up to £62.40 per year. Those earning between £50,271 and £125,140 can claim up to 40 per cent or £2.40 per week up to £124.80 per year.
Earners on above £125,140 a year can claim £2.70 per week up to £140.40 per year.
How far back can I claim?
While the rates are set yearly, you are allowed to backdate any claims from up to four years ago. The Government clamped down on eligibility from the 2022/23 tax year; however, you could claim for the full year’s allowance if you worked from home for just a single day, during the 2021/22 tax year.
This means that Brits could be losing out on anywhere between £312 and £702 of unclaimed tax relief. However, with the new tax year fast approaching, workers are urged to put forward any claims to avoid losing out on hundreds of pounds.
Olya said: “Work from home tax relief was one of the few formal acknowledgements of home-working costs as part of the post-pandemic hangover. While its removal reflects a wider shift in how hybrid working is, rightly so, becoming increasingly common, the Government won’t be accepting any new claims after 5th April.
“In order to claim from the 22/23 tax year onwards, your contract of employment must state you are a remote employee. This can be used as your evidence for why they should refund you your tax.
“Therefore, workers should be looking to see if they are eligible for claims and process them swiftly as possible to avoid losing out on potentially hundreds of pounds.”
For more information and to make a claim, visit the Government website here.
