Working from Home Tax Claims

Working from home

Working from Home Tax Claims

The government agency known as HMRC is in charge of collecting taxes, which are then used to pay for various public services offered in the UK. In addition, it is to administer financial support to individuals and families. HMRC is also responsible for assisting firms with their tax preparation and ensuring that the appropriate processes for import and export are followed.

The Department for Business, Energy, and Industrial Strategy is in charge of HMRC (BEIS). HMRC is responsible for collecting taxes, following tax laws, and paying taxes. People who worked from home during the global epidemic can get tax relief through the Working from Home Tax Relief program. It allows one to submit a claim for the expenditures, such as heating and energy charges, that you spent while working from the comfort of your home.

Working From Home Tax Relief

Individuals who worked from home during the epidemic are eligible for the Working from Home Tax Relief program, a tax relief program. The relief allows you to claim back a portion of your expenses incurred while working from homes, such as heating and electricity costs.

Disaster Recovery Allowance is available to those who have had Covid-19 at any point. COVID-19  forced many people to work from home, and the Government has recognized that this has resulted in additional household costs. The Working from Home Tax Relief program helps offset some of these costs.

 How easy is it to apply for relief?

Applying for relief is straightforward. You can either fill out a paper form or apply online. If you are using the service online, you will need to provide your national insurance number and details of your expenses. The eligibility criteria for the relief are as follows:

  • You must have worked from home at some point during the pandemic
  • Your work-from-home costs should be incurred from March 1, 2020, to April 5, 2021.
  • You must not have been reimbursed for your expenses by your employer
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What Expenses Can I Claim Back?

You can claim back a portion of your expenses incurred while working from homes, such as heating and electricity costs. For example, if you spent £50 on heating and electricity, you could claim back up to £25.

How Much Can I Claim Back?

You can claim up to £4 per week or £208 per year. It is a tax-free allowance, so you will not have to pay any tax on the money you claim back. The Government has set up a simple online calculator so that you can efficiently determine how much you are entitled.

As we move back to the new normal, the Working From Home Tax Relief will help those impacted by Covid-19 and make it easier for people to return to work. It allows you to work from home without incurring additional tax liabilities and will also help reduce your carbon footprint.

How Do I Get the Money I’m Entitled to?

Rightfully the money is deposited straight into the bank account you provided. You do not need to do anything else to receive the payment. Log in to your account and go to the ‘Claims and Payments’ section. HMRC keeps records of your expenses, which you can view online.

working from home

Can I Backdate the Tax Rebate for Working from Home?

Yes, you can backdate your claim by up to four years. Technically, the tax relief is only available from 2022 onward, but HMRC says it will allow claims backdated to 2018. You can still claim tax relief if you have worked from home since 2018.

Deadlines

The deadline for claiming tax relief was April 5, 2021. It is the same deadline as for self-assessment tax returns. So, if you haven’t already, you must file your return by this date to claim the relief.

If you work from home and pay income tax through PAYE, your employer will need to file a return by this date for you to receive the relief.

If you miss the deadline, you can still claim relief, but you will have to pay a late filing penalty.

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