Tax Relief

Tax breaks: working from residence? How one can save € 125 | Private finance | Funds

Around 800,000 employees who worked from home during the pandemic have already claimed tax breaks for household-related expenses, according to HMRC. Eligible employees can claim for the whole year if instructed by their employer to work from home.

Entitlement to a full year can even be asserted if the employee only worked one day in the tax year.

WFH tax relief is not only available for people who still work in the bedroom and home office.

Employees who have either returned to the office since the beginning of April or are preparing to return can still claim tax relief from home.

Receipt of this benefit could potentially earn employees a cash grant of £ 125 from year-round relief for the 2021-2022 tax year.

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Myrtle Lloyd, HMRC’s Director General of Customer Service, explained why and how employees can get this support.

She explained, “Now more people are going back to the office.

“But it’s not too late to apply for household spending tax breaks if you’ve worked from home during the pandemic.

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“You can quickly and easily check that you are eligible and apply online – go to GOV.UK and search for ‘tax breaks from home'”.

If you want to access support, you can start your application directly via the HMRC online portal.

After your application is approved, your tax number will be automatically changed for the tax year 2021-2022.

This means that employees receive the tax break straight away when their employer pays them their wages.

On its website, HMRC uses the example of a worker who pays the 20 percent property tax rate and applies for a tax break of £ 6 per week.

In these circumstances the worker would receive £ 1.20 a week in tax breaks, which is 20 percent of £ 6 a week for his household bills.

Taxpayers paying a higher rate would receive £ 2.40 a week, which is 40 percent of £ 6 a week.

Over the year, customers would reduce the tax they pay by £ 62.40, or £ 124.80 under these two tax brackets.

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