As we mentioned last month, HMRC has now launched its new portal for claiming working from home relief. From 6 April 2020, employers have been able to pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home. Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

HMRC has clarified for us a number of queries in respect of the new portal.

Claims apply to the remainder of the year even if the person goes back to the office

When taxpayers access the Microservice, they are asked “When did you start working from home?” You can apply now for tax relief in this tax year even if you do not know how much longer you will be working from home. This is because HMRC will apply tax relief for the whole of this tax year, even if you go back to your workplace before 6 April 2021.

Claims if dividing time between the home and office

The guidance states that you may be able to claim tax relief for additional household costs if you have to work at home on a regular basis, either for all or part of the week. This includes if you have to work from home because of COVID-19. If you have a choice in where to work, you will be unable to claim.

Generally, taxpayers would only have to claim once as they would be directed through the portal from 1 October which would apply the relief for the full year. Taxpayers are advised of this when they are in the system. However, if they claimed prior to the new portal going live or over £6 limit and/or included an additional expense, they would be directed to claim relief via the I-form where they could enter the specific amount they want to claim. This scenario could result in taxpayers having to claim again if they applied earlier and are still working from home now.