Published: 27/10/2020 By Sarah Schendel
Working from home has become a new way of life for a majority of the employed, and although it has its increased costs, you can now actually claim back a whole year’s worth of tax relief for working from home to account for a proportion of your outgoings for electric and heating usage. Yes it’s true!According to HMRC, the tax free amount you can claim for is £6 per week which is worth £62 for basic rate tax payers or £124 for higher rate tax payers. Although it has always been common knowledge that you can claim expenses for working from home, it has never been a whole year’s worth before now and you can request a claim immediately. You only need to work from home at least one day per week and HMRC will adjust your tax code for the remainder of the financial year. (Remember that you will need to include the amount that you claim within your tax return as assessable income.)
It may not be the right time just now to ask your employer to make a claim on your behalf, especially if they are suffering financially from the effects of coronavirus, Instead just click here for all the information and guidance that you need. You will require a government gateway ID but if you haven’t got one, you can create one, it takes just 10 minutes. Your claim should be applied to your tax code within a few days, it couldn’t be more simple! You’ll receive the rebate through your tax code, so it won’t be money in your hand, but don’t let this deter you from claiming it as it is money that you are entitled to.
turpin barker armstrong are professional and affordable accountants who are always available to advise you on how to be more tax efficient, make more profit and grow your business. We assist all types of business owners including Sole Traders, Limited Companies and Partnerships.
For any advice on this announcement as well as any tax related issue we would love to hear from you. Please call 0208 661 7878 or email bsg@turpinba.co.uk
A free initial consultation meeting can be arranged by way of a socially distanced meeting in our offices, on the telephone, or via email, all at your convenience.