Fully remote workers can still claim backdated payments worth up to £140 a year
Employees have been warned they could miss out on up to £140 following a cut-off date in April. The Government is set to scrap working from home (WFH) tax relief from the upcoming financial year.
At the start of 2025, roughly 39 per cent of British employees were working entirely remotely. This makes them eligible to claim back expenses including gas, electricity, and business telephone calls.
For those on higher incomes, these claims could total as much as £140.40 per year. While this programme is set to end next month, workers still have until April 5 to lodge retrospective claims going back to 2021/2022.
Given this timeframe, Olya Yakzhina, head of people and culture at Work.Life, has urged Britons to check their eligibility for tax relief ahead of the deadline. She explained that those working from home in a fully remote capacity are entitled to receive the WFH tax relief payment.
However, employees whose contracts allow home working but who are required to attend the office under hybrid arrangements cannot make a claim for tax relief. Even in situations where office access is restricted due to overcrowding or capacity limits, claims are not permitted – only fully remote employees are eligible.
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.
