Millions of people across the United Kingdom who were mandated to work from home during the initial phase of the Covid-19 pandemic have a final opportunity to claim tax relief on their household expenses. The deadline for submitting claims for the 2020/21 tax year is 5th April 2025, with those eligible potentially able to receive up to £140 in total relief across two tax years.
The relief, introduced by His Majesty's Revenue and Customs (HMRC), allowed individuals to claim £6 a week for additional costs incurred while working remotely, such as heating, electricity, and broadband. This applied to employees who were required by their employer to work from home, rather than choosing to do so. While the relief was initially available for the 2020/21 and 2021/22 tax years, the approaching deadline specifically pertains to the earlier period.
For the 2020/21 tax year, eligible workers could claim a flat rate of £312 for the entire year, equating to £6 a week. This meant basic rate taxpayers could receive £62.40 back, while higher rate taxpayers could claim ��124.80. A similar claim was available for the 2021/22 tax year, bringing the total potential relief to £140 for those who claimed for both periods.
To make a claim, individuals can use HMRC's online portal, which was specifically set up during the pandemic to streamline the process. Alternatively, claims can be made over the phone. It is important for claimants to ensure they meet the eligibility criteria, primarily that they were required to work from home by their employer due to Covid-19 restrictions, and not by personal choice.
The scheme was a direct response to the unprecedented shift in working patterns during the pandemic, when government guidance and subsequent lockdowns necessitated a widespread move to remote working. The Treasury introduced the relief to help alleviate the financial burden on households facing increased utility bills. As the deadline approaches, consumer advice organisations are urging eligible individuals not to miss out on this final chance to recoup some of those costs.