Tax Relief

To do business from home? You might be able to apply for tax breaks in 2021/22

To work from home? You may be able to apply for tax breaks in 2021/22

More than 550,000 employees have already made claims and benefit from the tax break.

If working workers have been instructed by their employer to work from home due to the coronavirus and as a result their household costs have increased, they can claim the home tax breaks. You can make claims quickly and easily via the HMRC online portal.

HMRC received more than three million requests for tax relief for the 2020/21 tax year.

Myrtle Lloyd, HMRC’s General Manager, Customer Service, said: “Half a million people have already cut their income tax by as much as £ 125 this year by taking tax breaks on their work from home.

“We want everyone who is entitled to benefit from it. That’s why we’ve made it quick and easy to work online. Check if you are eligible and apply on GOV.UK by searching for “Working from Home Tax Break”.

“HMRC continues to help and support people affected by the pandemic.”

As of April 6, 2020, the amount employers can pay tax-free without employees having to provide evidence of an increased bill can be up to £ 6 per week. Employees who have not received payment of labor costs directly from their employer can apply for tax relief from HMRC.

Eligible customers can apply for tax relief based on the tax rate at which they are paying tax. For example, if an employee pays the 20% property tax rate and claims tax breaks of £ 6 per week, they will receive a tax break of £ 1.20 per week (20% of £ 6 per week) on the cost of their household bills.

Higher rate taxpayers would receive £ 2.40 per week (40% of £ 6 per week). Over the course of the year, this could mean customers can cut the tax they pay by £ 62.40 and £ 124.80, respectively.

Taxpayers can check whether they are eligible via GOV.UK.

To apply for tax breaks for working from home, employees can apply directly via GOV.UK free of charge. As soon as the application has been approved, the online portal adjusts the tax code for the tax year 2021/22. You will receive the tax break directly from your salary until March 2022.

If employees had to work from home last year but didn’t apply for tax breaks, they didn’t miss it. The HMRC accepts retrospective claims for up to four years. You will receive a lump sum payment for successful retrospective claims.

Using an agent to apply for home tax breaks and other similar schemes can result in customers paying unnecessary fees or commissions. The GOV.UK service is quick and free to use, and customers receive 100% of the tax breaks due. Agents cannot use the online portal to request relief on behalf of a customer.

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