22 June 2022 
Julia Ascott, Employment Taxes Specialist
The CIOT reports that HMRC has responded to a query raised by the ICAEW in one of its Employment and Payroll Groups to confirm that PAYE codes which have been adjusted for claims made online for working from home (WFH) expenses of £6 per week will not be carried forward to the following year, but those made through self-assessment will.
Many employees will have qualified for these expenses in 2020–21 and 2021–22 due to Covid requirements to work from home if possible. However, most will no longer qualify in 2022–23. The annual coding process has removed the expenses from 2022–23 PAYE codes for non-self-assessment employees. However, for employees who claimed via a self-assessment return the auto-coding process is determined by what is claimed on their return.
The employee, if ineligible, should therefore contact HMRC to ask for the expense to be removed from the tax code. If they do not, the coding will be updated on receipt of their next self-assessment return and their overall tax liability for the tax year will be calculated under self-assessment.
