Workers warned they could lose up to £140 a year as April deadline looms | Personal Finance | Finance

Woman sorting finances

Remote workers don’t have long left to claim for tax relief (Image: Getty)

Workers have been warned they could lose up to £140 a year following an April deadline. The Government is set to scrap working from home (WFH) tax relief as of the next financial year

As of early 2025, around 39% of British workers were fully remote. This would make them eligible to claim on expenses such as gas, electric, and business calls.

For high earners, these could be worth as much as £140.40 per year. This scheme is set to end next month, however, until April 5, it is possible to apply for backdated claims from as far back as 2021/2022.

With this in mind, Olya Yakzhina, head of people and culture at Work.Life, urged Brits to check if they qualify for tax relief before the deadline. She explained that if you work from home in a fully remote position, then you are eligible for the WFH tax relief payment.

But, if your contract allows you to work from home but you’re required to go into the office on a hybrid working arrangement, then you can’t claim tax relief. Even if you can’t get into the office because it is busy or full, you’re still not allowed to claim for this – only fully remote workers can claim.

Woman Working From Home Office With Laptop

If eligible, you claim on expenses such as gas, electric, and business calls (Image: Getty)

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% 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% 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.

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