Tax Relief

The right way to apply for tax breaks and the way a lot to count on

If you’ve worked from home – even for a day – during the pandemic, you can apply for a tax break (Shutterstock / Brian A Jackson)

If you worked from home during the coronavirus pandemic, you can backdate your tax break entitlement now.

People who worked from home during the pandemic could be eligible for tax breaks of up to £ 125 a year, even if they only did so for one day.

Employees returning to the office can still claim cash for household expenses for this tax year, says HM Revenue and Customs (HMRC), whose figures showed nearly 800,000 tax breaks have applied for tax breaks since April.

Myrtle Lloyd, HMRC’s director general of customer service, said, “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.”

Am I entitled to tax relief from home?

You can claim the full year tax break of £ 125 if your employer has told you to work from home – even if it was only for one day.

Regardless of whether you have been back in office since the beginning of April or are planning to do so – you can still receive the full amount for the tax year 2021/22. It’s okay if you only work from home part of the week.

However, you cannot claim tax breaks if you work from home. You also cannot claim tax breaks if your employer has paid for your expenses or paid you a subsidy.

If you fill out an annual tax return, you can apply for tax relief through your self-assessment.

How to apply for the work from home tax break

You can use the HMRC tax break portal from home, where you will be asked a series of questions to see if you are eligible or not. To proceed with your claim, you will need a Government Gateway user ID and password, which you can create if you don’t already have one. According to HMRC, it takes about 10 minutes to create.

What documents do I need for my claim?

To create a Government Gateway ID, you will need your National Insurance Number and some form of identification such as a recent pay slip or P60 or a valid UK passport. If you are claiming an exact cost amount, you will need evidence such as receipts, invoices or contracts.

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How much tax relief can I claim?

Each employee can claim up to £ 125 per year. This is made up of either £ 6 per week starting April 6, 2020, or the exact amount of additional costs beyond the weekly amount for which you will need the above supporting documents.

The tax relief is based on the rate at which you pay tax. So if you pay the 20% property tax rate and request a £ 6 per week tax break, you will get £ 1.20 per week in tax relief (20% of £.). 6) which would add up to £ 62.40 a year. Taxpayers with a higher tax rate can charge £ 2.40 per week (40 percent of £ 6 per week), which would result in £ 124.80 per year.

What can I claim tax relief for?

You may be able to get tax breaks on bills such as gas and electricity, metered water, business phone calls, and internet costs. You can’t ask for the entire bill – just the part related to your work.

How do I get the money?

As soon as your application has been approved, your tax number will be adjusted for the tax year 2021/22 and you will receive the tax relief directly from your salary.

How to backdate a claim

If you had to work from home in the 2020/21 tax year but did not apply for tax relief, it is not too late.

You can make claims retrospectively for up to four years and, if successful, receive a lump sum.

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