Confused on how this working from home tax relief works?

danlightbulb

Hi all,
As Ive now been working from home for 6 months I decided to make a claim for the working from home standard tax allowance.
I did it a couple of weeks ago using the online form. I claimed for 22 weeks from 6th April through to 4th September. 22 weeks x £6 per week = £132.
So obviously I expect to get tax relief on this £132 amount which will equate to £132 x 20% = £26.40 in my pocket.
If I continue working from home (looks like I am) then I'll claim for the remaining half year at the start of 2021/22 tax year.
This is all fine.

However here is what I don't understand.
Today I got my recoding notice from HMRC. It gives me an adjustment of +£132 on my standard personal allowance of £12,500 so my personal allowance is now £12,632.
As i get paid monthly, I'll effectively get 1/12th of the tax relief each month. But as we are already half way through the year, by the time the year ends I will only have received half the tax relief I'm entitled to, won't I?
Shouldn't they have adjusted the tax code higher to ensure I recover the right amount over the next 6 months instead of 12, or will they remove the original £132 six months into the next financial year?

When I make the next claim for the next 6 months, if Im working from home that long, then there will be another £132 ish to tag on top as well. I assume this would be spread over the full 12 months of the next tax year, but what will trigger them removing the original £132? 

I don't know how I'm going to track whether they have given me the full allowance or not as it will span + 18 months from now in terms of my tax code. I know this is a fairly small amount of money but as its the tax office I want to make sure I get every penny I'm owed.

 

Dazed_and_C0nfused

When your employer first operates the new tax code you will receive the benefit of the higher tax code backdated for the first 6 months of the year.

Then it works month by month.

If you then make a claim for additional expenses after the tax year ends HMRC usually recalculate your tax for the year you are claiming for and send any tax overpaid direct to you.

It is unusual, but not impossible, to include tax relief for these type of expenses in the tax code of a different tax year.

molerat

If the new code does not have X or M1 after it then you will receive 6/12ths of the extra in this month's pay and 1/12th each month going forward, your tax free allowance to date at the end of September is 6/12ths of £12632 when August was 5/12ths of £12500.

danlightbulb

Ah cool didn't realise they would backdate it. Thanks for clarifying it both of you.

Dazed_and_C0nfused

You can expect to pay around £13 less tax next time you are paid.

And then £2/month less thereafter (compared to tax code 1250L).