Working from home - what tax code should I be on and for how long?

w00519773
w00519773 Posts: 222 Forumite
Fifth Anniversary 100 Posts Name Dropper
I have worked from home since March 2020 due to Covid-19.  I filled in this form in December 2020 and therefore my tax code changed from 1250L to 1282L: https://www.gov.uk/tax-relief-for-employees/working-at-home.  My tax code has changed this month to: 1257L.  Is that the correct tax code?
1282L is a work from home tax code as described here: https://forums.moneysavingexpert.com/discussion/6220626/change-in-tax-code.  However, 1257L seems to be a standard tax code (like 1250L was last year) as described here: https://www.gov.uk/tax-codes i.e. "1257L is the tax code currently used for most people who have one job or pension.".  This becomes more complicated because I have filled in the work from home form again today for 2021/2022.  What tax code should I be on and for how long?

Comments

  • sammyjammy
    sammyjammy Posts: 7,878 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    If you've only just filled in the form for 21/22 how do you think they would know to change your tax code?  They won't just assume you are WFH on an ongoing basis.
    "You've been reading SOS when it's just your clock reading 5:05 "
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,052 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    No one can tell you what your tax code should or shouldn't be as lots of things could impact it.

    But if it was 1257L at the start of this tax year then you can expect it to change to 1288L once your WFH claim for 2021:22 has been processed by HMRC.

    Whether 1288L (or 1257L) is correct is another matter.  But it probably is.

  • w00519773
    w00519773 Posts: 222 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    edited 6 May 2021 at 7:18AM
    Thanks for your comments @Dazed_and_confused and @sammyjammy.
    Say I did not claim in 2021/22, then how would the remainder of the 2020/21 refund be paid? My tax code changed from 1282L to 1257L in April 2022, which indicates to me that the refund stopped.
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,052 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Why do you think you are due any more tax relief for 2020:21?

    Assuming the 2020:21 tax code was operated on a cumulative basis then you would have received the full relief due by the time you were paid for month 12/week 52 of the tax year.

    But confused why you think something different is going to happen.
  • w00519773
    w00519773 Posts: 222 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    Why do you think you are due any more tax relief for 2020:21?

    Assuming the 2020:21 tax code was operated on a cumulative basis then you would have received the full relief due by the time you were paid for month 12/week 52 of the tax year.

    But confused why you think something different is going to happen.
    I think that clears it up.  For some reason I thought it took 12 months to receive the full refund regardless of when you claim.  However, what you are saying is that as my first refund was in January then I received the full amount between January and March (inclusive).
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,052 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Yes, if you check your January payslip you should see a bigger reduction in tax paid and then in February and March you will have probably paid £5/month less than you were previously paying (assuming same taxable wage).
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349.7K Banking & Borrowing
  • 252.6K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.7K Work, Benefits & Business
  • 619.4K Mortgages, Homes & Bills
  • 176.3K Life & Family
  • 255.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.