THOUSANDS of people who work from home have just days left to claim tax relief from the Government worth £280 a year.
During the Covid pandemic thousands of employees were told to work remotely.
Anyone who worked from home during this time could claim tax relief to cover the extra cost of remote working, such as higher water or heating bills.
But eligible workers who have not yet claimed for this period have just days left to do so.
This is because you can claim tax relief for the current tax year and the four previous ones.
You need to claim before the tax year ends on April 5, which means you must act now.
Read on to find out how tax relief works, how to claim and what you could get.
How does tax relief work?
Tax relief is something you can claim to reduce your overall tax bill.
You may be able to claim it if you use your own money for things you need to buy for your job and you only use these items for work.
This can include uniforms, work clothing, tools, vehicles you use for work, professional fees and subscriptions.
You can also claim for travel and overnight expenses.
The amount of tax relief you get is based on what you have spent and the rate at which you pay tax.
For example, if you claim £60 and pay tax at a rate of 20% in that year, the amount you are entitled to is £12.
You cannot make a claim if your employer gives you all the money back or an alternative.
For example, if they give you a laptop but you want a different make or model.
How can I get tax relief for working from home?
If you worked from home during the pandemic you may be able to claim tax relief.
Reasons your claim may be invalid
THERE are many reasons why your tax relief claim could be rejected. Here we explain some of the most common.
You cannot claim the following:
Travel and overnight expenses
- Travelling or commuting to and from your normal place of work.
- Lunch costs when you are travelling to your normal workplace. You can only claim expenses for food and drink when travelling to a temporary place of work.
- Food you bring from home when travelling to a temporary workplace.
Working from home
- You cannot claim for work from home costs when you have an office but choose not to work there.
- If your contract lets you work from home all or some of the time, for example as part of flexible working arrangements, then you are not eligible for tax relief.
- You cannot claim tax relief for the current financial year under the Covid 19 rules as these no longer apply.
Uniform, work clothing and tools
- Expenses for uniform, work clothing or tools that have already been provided by your employer. This includes if you decide to purchase ‘better quality’ alternatives to the ones your employer provides.
- Uniform washing costs if your employer has a laundry facility that you choose not to use and instead was your uniform at home.
- Workwear that does not include a visible logo e.g. if your employer advises you to wear all black clothing.
Professional fees and subscriptions
- You cannot claim tax relief on union fees. These are considered to be separate from professional membership fees.
- Work expenses that are covered by your employer.
The relief is available to anyone who worked from home for at least one day between April 6, 2020 and April 5, 2022.
To be eligible you must have incurred extra household costs, such as increased heating or electricity bills, because your employer required you to work from home due to:
- Coronavirus measures
- The closure of your usual workplace
- Being told to self-isolate by NHS Test and Trace or
- Self-isolating because you were pinged by the NHS app
You cannot get the cash if the business stayed open and you were allowed to go into work but chose not to.
You cannot claim if your employer already paid your expenses, for example if they gave you £5 a week to cover the extra cost of working from home.
You can claim tax relief on £6 a week from the tax years that ran from April 6, 2020 to April 5, 2021 and April 6, 2021 to April 5, 2022.
If you are a basic rate taxpayer, the relief is worth 20%, which would give you £1.20 a week.
Over the course of a year this would add up to £62.40, or £124.80 for both tax years.
How do I check my tax code?
YOU can check your tax code on your personal tax account online, on any payslips or on the HMRC app.
To log in, visit www.gov.uk/personal-tax-account.
If you have one, you can also check it on a “Tax Code Notice” letter from HMRC.
Bear in mind that you might need your Government Gateway ID and password to hand to log in.
But if you don't have this you can use your National Insurance number or postcode and two of the following:
- A valid UK passport
- A UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland)
- A payslip from the last three months or a P60 from your employer for the last tax year
- Details of a tax credit claim if you have made one
- Details from a self assessment tax return (in the last two years) if you made one
- Information held on your credit record if you have one (such as loans, credit cards or mortgages)
If you are a higher rate taxpayer then your relief would be worth 40% – or £2.40 a week.
This would give you £124.80 for one year or £249.60 for both tax years.
Meanwhile, if you are a top 45% taxpayer then your relief would be worth £2.70 a week, or £140.40 a year.
For both years you would get £280.80.
If the cost of working from home was higher than the weekly allowance then you can claim the exact cost back.
To do so you will need evidence such as receipts, bills or contracts.
Can I still claim the relief if I still work from home?
Since the pandemic the Government has tightened the rules around who can claim tax relief for working from home.
To be eligible now your job must require you to live far away from your office or your employer must not have an office.
You cannot claim tax relief if you choose to work from home.
This includes if your contract lets you work from home some or all of the time.
You are also not eligible if your employer has an office but you cannot use it sometimes because it is full.
You can still get tax relief on £6 a week or the exact amount you have spent.
How can I claim the relief?
You can check if you are eligible to claim a tax refund on the GOV.UK website.
You should always check if you are eligible before you make a claim as it could save you time and money.
Always make a claim directly to HMRC to make sure you can keep all the money you are owed.
You can complete the claim form on the GOV.UK website.
Do not get caught out by online adverts and tax refund companies who offer to make a claim for you.
These companies do this so they can claim a commission.
Be wary of firms promising you easy money that sounds too good to be true.
If you hand over personal information you could end up having to pay back the full amount of any invalid claim made on your behalf, including any commission an agent has taken.
For most expenses claims you need to provide supporting evidence to prove that you are eligible.
You do not need to do this if you are claiming for uniform, work clothing and tools.
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