Throughout the pandemic employees have been able to claim work from home tax relief for additional costs incurred whilst working from home. The good news is that this scheme is set to continue for the 2021/2022 tax year.
HMRC has confirmed that the tax relief scheme will continue and can be claimed for the whole of 2021/2022 and the claim can be made even if you’ve only worked from home for one day so far.
Employees can claim up to £6 week without providing evidence for costs incurred, such as additional heating and electricity, and this applies even if you return to the office or your time is split between home and the office. You can choose to claim for the exact amount if this is more than £6 a week but you will need to provide evidence of the costs incurred such as bills and receipts.
What you need to know to claim:
- To make a claim for Work From Home Tax Relief you will need a Government Gateway user ID and password. This is easy to create if you don’t already have one.
- If you fill in a self-assessment to pay your taxes you will need to apply via your self-assessment form, either online or via post.
- You can claim if you must work from home for all or part of the week on a regular basis
- It is an individual benefit but others in your household can claim if they too must work from home.
- Additional costs include metered water bills, heating, home contents insurance, business calls and new broadband connections.
- It does not include any cost that would stay the same whether you were working at home or not.
- You will have to sign an online declaration to confirm that the extra costs are as a result of having to work from home.
- The amount of tax relief you get will be dependent on your income tax band – around £62 for basic taxpayers and £124 for higher taxpayers for the whole year if the £6 a week option is chosen.
The process for applying for Work From Home Tax Relief is quick and simple and can be completed via the Government’s website.
If you need any assistance or advice on this then please get in touch with us on 020 7193 8798. Alternatively, you can send us an email at firstname.lastname@example.org or via our website:- https://accountspro.co.uk/contact-us/