Work from Home Allowance

So this week, I had a really interesting phone call with somebody and that led to a phone call from somebody else with exactly the same question & they both got exactly the same answer.

They were after about this working from home allowance as employees.

Now you might remember that for tax years 2020/2021 and 2021/2022 (ignore the video dates), If you worked one day from home for your employer due to COVID-19, then you could claim the full years – £6 a week working from home allowance, so £312.

But what these people were thinking they were going to get was a cheque from HMRC for both years of £312 per year.

Wouldn’t that be nice?

That is not quite right. You don’t get £312 cheque coming from HMRC, what you will get is an uplift of your personal allowance of £312.

So in effect, you will get back in tax purposes 20% of £312 if you are a 20% taxpayer or 40% if you’re a 40% taxpayer.

So that means it’s not £312 that will come winging through your door. It’ll be twenty percent of £312 pounds. So £62.40 will come through as the tax effect of having this working from home allowance.

Now as the tax year has gone, you still can apply for it online, and it will be backdated. Then you may end up getting a cheque for it. So that will be great.


So no, I’m afraid, you don’t get £312 tax back from HMRC. If so, I’d be employed!

If you need any further information then please contact me on 01344 669084 or email [email protected]

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