As time-limits approaches, millions will need to file self-assessment tax returns

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If they worked from home, people clicking the correct box might be £ 125 better off.

Several million people have yet to file their tax returns with just over four weeks to go before the January 31 self-assessment deadline. If you are one of the millions of people that your boss has told you not to come into the office, don’t forget that if you work from home, you can demand a tax benefit of up to £ 125 a year. Every year, 11 million people have to file a tax return.

There were also 5.4 million taxpayers who had not filed by December 31, 2019, and 5.5 million who had not filed by December 31, 2018, looking at previous years. For most people, the corona virus is no reason not to, while HM Revenue & Customs has said it is “determined to help customers during this difficult time” HMRC says it is conscious that many individuals will be adversely affected by the pandemic and will need help, for instance, to spread the cost of their tax bill. Once an individual has completed their 2019-20 tax return and is aware of their tax bill, if they owe less than £ 30,000, they can set up a payment plan. They can then pick how much they automatically want to pay and how much they want to pay by direct debit per month, and it can all be done online. It’s a good time to remind the many individuals who have spent most of the last few months at the kitchen table or in the spare room to apply for work-from-home tax relief. The pandemic covers two tax years as the first freeze begins on 23 March 2020: 2019-20 (the last two weeks) and 2020-21. If you do not complete a tax return, it is arguably much easier to apply for relief. This is because HMRC has set up an online portal that provides workers with a simple way to assert the relief, provided their employer has instructed them to operate from home and provided they have not earned payments directly from their company for home-related expenses. If you want to go the easy way without receipts, your claim would be based on the presumption that you have incurred expenses o That’s £1.20 a week for base rate taxpayers. Taxpayers at higher rates will demand £2.40 a week. This will decrease the bill by £ 62.40, or £ 124.80 for higher-rate taxpayers, over the course of a year. Notice that the amount of £ 6 per week applies to the period from 6 April 2020; it is £ 4 per week for the earlier tax years. As Sarah Coles of investment firm Hargreaves Lansdown explains, you can demand tax relief for some weeks of the tax year 2019-20 and for the entire 2020-21 by indicating when you started working from home on the online platform, and the relief will be applied by HMRC. You will not be eligible to use the online platform if you complete a self-assessment form – you will need to report this as an expense on your tax return (working from home should be included in the box for ‘other expenses and capital allowances’).

And, most critically, up to and including April 5, 2020, you can only say this on your 2019-20 tax return. After that date, you will have to wait for the 2020-21 tax return to claim work-from-home expenses. So, who wants to file a tax return? Broadly speaking, whether either of the above applies: – You are a single self-employed trader with an annual turnover of more than £ 1,000; – You have gained more than £ 2,500 from the lease of property; – You or your wife have obtained child support and one of you has an annual income of more than £ 50. In other untaxed revenue, for example from tips or fees, you have gained more than £ 2,500; or are an employee reporting expenses totaling more than £ 2,500; – You are paid more than £ 100,000 a year; or you have earned income from abroad on which you have to pay tax.

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