According to the latest figures, 41% of workers reported working from home at least some of the time and could be entitled to a tax relief and some cash back from HMRC
Employees who work from home could be entitled to a refund from HMRC.
The Office for National Statistics (ONS) revealed that 41% of workers have been working from home at least some of the time, especially since COVID. However, this means that employees often bear the cost of working from home.
Fortunately, workers can claim tax relief on expenses incurred while working from home, including Wi-Fi and energy costs. Employees can claim tax relief on £6 per week, which amounts to £62 a year for a basic rate taxpayer earning up to approximately £50,000 or £125 a year for a higher rate taxpayer for the current tax year.
If you haven’t applied yet, you can claim for up to four years if you were eligible. To qualify:
- Your employer must have instructed you to work from home
- You cannot choose to work from home
- You must not receive expenses directly from your employer for working at home
You don’t need to complete a self-assessment to claim, but those who do can claim their expenses this way. To claim, simply go online and use the HMRC portal.
Once your application has been approved, your tax code will be adjusted for the tax year. This will inform your employer of the amount of tax to deduct from your pay.
The rebate will be received directly through your salary. If you’re a basic rate taxpayer, you’ll see about £5 extra added to your pay each month, while higher rate taxpayers will receive around £10 extra.
If you have a backdated claim, expect a lump sum in your next payslip. Costs that remain the same, whether you work at home or not, cannot be included. Specifically, this includes mortgage interest, rent, council tax, and water rates.
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