Do you want to work from home? How to obtain tax relief and save £125.
For hundreds of thousands of Britons across the country, working from home (WFH) has become the new normal. Despite the fact that offices are reopening, many people are still working from home and are eligible for tax deductions.
Around 800,000 people who worked from home during the pandemic have already claimed tax relief on domestic expenses, according to HMRC. This savings is worth £125 per year for each employee and can be used to cover a variety of expenses that impair their ability to work from home. If an eligible worker is told by their employer to work from home, they can receive the entire year’s pay.
Even if the employee only worked for one day during the tax year, a full year’s entitlement might be claimed.
WFH tax relief, on the other hand, isn’t just for folks who are still working from their bedrooms and home offices.
Workers who have either returned to work or are ready to return to work since early April can still claim the working from home tax exemption.
Employees who qualify for this benefit could receive a £125 cash increase from the full year’s relief for the 2021-2022 tax year.
HMRC’s Director General for Customer Services, Myrtle Lloyd, explained why workers need this help and how they may get it.
“More individuals are returning to work in the office now,” she explained.
“However, if they’ve been working from home during the pandemic, it’s not too late to apply for tax relief on household expenditures.
“Go to GOV.UK and search for ‘working from home tax relief’ to see if you’re eligible and to apply online.”
Those who wish to apply for assistance can do so immediately through HMRC’s web portal.
Their tax code will be automatically updated for the 2021-2022 tax year after their application is granted.
This means that employees will receive tax reduction directly from their employers when they receive their paycheck.
It is important to understand that agents cannot apply for WFH tax relief on behalf of a customer.
The maximum amount a company might pay its employees tax-free without them needing to show evidence of an increased expense was set at £6 per week as of April 2020.
Employees who have not yet received reimbursement for expenses incurred while working from home are urged to do so. “Brinkwire News in Condensed Form.”