Who is eligible for working from home tax relief?
How much tax relief for working from home I can claim?
How do I claim working from home tax relief?
What can I claim as part of working from home tax relief?
Do I need to keep receipts for working from home tax relief?
What is the deadline to claim working from home tax relief?
Working from home has become the new normal for many of us over the past year. And while it has its perks (hello, setting the alarm at 8:59), it can also come with some unexpected costs.
If you have been working from home during the pandemic, you may be eligible to claim working-from-home tax relief. Here's everything you need to know about working-from-home tax relief and how to claim it.
PJ days on zoom are over, yet its echoes will be heard for days to come. HMRC`s Working from home tax relief may come as a lifeline whilst the UK is heading towards a rabbit hole of uncertainties like the rising cost of living, and even a possible recession.
What is working-from-home tax relief?
Working-from-home tax relief is a tax deduction that you can claim if you have been working from home because of the pandemic. The deduction can be used to offset the cost of expenses such as your rent, utilities, and internet bill.
Who is eligible for working-from-home tax relief?
You are eligible for working-from-home tax relief if you have been working from home because of the pandemic. This includes if you are working from home because your office is closed, or if you are working from home to avoid exposure to the virus even for 1 day.
Working-from-home tax relief is available for the 2020/21 and 2021/22 tax years. The deduction is not available for the 2022/23 tax year.
With the increasing number of UK employees adapting the “hybrid” working system, HMRC has made some changes to the eligibility conditions;
- You need to live far away from your office as part of the job requirements,
- There are no available, or appropriate conditions for you to work from the office
- Your employer doesn`t have an office.
Unless you met one of the above conditions, you won`t be able to eligible to claim working-from-home tax relief in 2023.
How much tax relief for working from home I can claim?
From 06 April 2020, you can claim £6 per week, and you will not be required to maintain any evidence for the costs incurred. The amount of tax relief will depend on what rate you pay taxes.
- If you are a basic rate taxpayer, paying 20% tax, you claim £1.20 per week and £62.40 per year.
- If you are a high-rate taxpayer, paying %40, you can claim £2.40 per week and £124.80 per year.
- If you are an additional rate taxpayer, paying $45 you can claim £2.70 per week and £140.40 per year.
How do I claim working-from-home tax relief?
To claim working-from-home tax relief, you will need to submit a claim form to HMRC. The form can be found on the HMRC website. If you provide a national insurance number by signing up with HMRC Gateway, you can start claiming tax relief.
If you file a self-assessment tax return, you just need to include the expenses in the "other expenses and capital allowances" section.
working from home tax relief is available for the 2020/21 and 2021/22 tax years. The deduction is not available for the 2022/23 tax year.
You can claim working-from-home tax relief by filling in a self-assessment tax return. If you're not already self-employed, you'll need to register as self-employed with HMRC first.
If you are an employee and have asked to work from home you may be eligible to make the claim, but it has to be your employer`s decision. If your expenses, whilst working from have been covered by your employer, you can`t apply for working from home tax relief.
What can I claim as part of working-from-home tax relief?
You can claim working-from-home tax relief for expenses like electricity, gas, water, broadband (pay-back time for forever buffering internet connection at home), and business phone calls.
Do I need to keep receipts for working-from-home tax relief?
If you are claiming expenses of more than £6 per week. Yes, you'll need to keep receipts for any expenses you claim as part of working-from-home tax relief. HMRC may ask to see these at any time.
What is the deadline to claim working-from-home tax relief?
if you haven't already, be sure to register as self-employed and submit your claim form before the deadline.
With working from home tax relief, you can save money on your taxes while working from the comfort of your own home. Be sure to check if you're eligible to claim working from home tax relief and submit your claim form before the deadline.
So, there you have it! Everything you need to know about how to claim working from home tax relief. If you've been working from home during the pandemic, be sure to take advantage of this scheme and get some money back. It might be a good strategy to ease your budget against the hefty tax bill by January 2023.
