As of April, nearly 800,000 employees who worked from home during the pandemic have already claimed tax breaks for household-related costs, HM Revenue and Customs (HMRC) announced.
The saving is up to £ 125 per year for each worker and eligible workers can have full year entitlement if instructed by their employer to work from home, even if it was for one day during the tax year .
Employees who have either been working in an office since the beginning of April or are preparing to return can continue to take advantage of the tax relief for working from home and benefit from the full annual exemption for the tax year 2021 to 2022.
Employees can apply directly themselves and receive the tax relief in full. As soon as your application has been approved, your tax number will automatically be adjusted for the tax year 2021 to 2022 and will receive the tax relief directly from your salary. Agents cannot use the online portal to apply on behalf of a customer.
Myrtle Lloyd, HMRC’s General Manager, Customer Service, said:
More and more people are back to work now, but it’s not too late to apply for tax breaks on household expenses if they worked from home during the pandemic.
You can quickly and easily check if you are eligible and apply online – go to GOV.UK and search for “tax breaks work from home”.
As of April last year, the maximum amount that employers can pay tax-free without employees having to show an increased bill is £ 6 per week. Employees who have not received home labor cost payment directly from their employer can apply for tax relief from HMRC.
Eligible customers can claim tax breaks based on the rate at which they pay tax. For example, if an employee pays the 20% property tax rate and claims a tax break of £ 6 per week, he receives £ 1.20 per week in tax relief (20% of £ 6 per week) on the cost of his household bills. Taxpayers with a higher tax rate would receive £ 2.40 per week (40% of £ 6 per week). Over the course of the year, this means customers can cut the taxes they pay by £ 62.40 and £ 124.80 respectively.
If employees had to work from home in the 2020-2021 tax year but didn’t take the tax break, they didn’t miss it; HMRC accepts retrospective claims for up to 4 years. You will receive a lump sum payment for all successful retrospective claims.
The number of applications submitted in the tax year 2021 to 2022 is 794,819 as of June 27, 2021, and relates exclusively to online portal applications.
Learn more about how to apply for tax relief for work-related expenses.
If an employee completes an annual tax return, he can apply for tax relief through his self-assessment.