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£125 working from home tax
Did you know the government has recently made it much more easier for those working from home to claim tax relief worth up to £125 to help cover the extra costs of things such as stationery and some household bills.
Current coronavirus advice across all UK nations is for people to work from home where possible, with many employees seeing some outgoings increase as a result. It’s possible to make claims for both the 2020-21 and 2021-22 tax years, which could mean a rebate of up to £250.
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How can I claim working from home tax relief?
The government’s microsite makes claiming tax relief pretty easy, but there are some eligibility criteria.
To have a claim, you must: How much will you get?
• Only be claiming expenses for working from home
• Not pay tax by self-assessment
• Not have had your expenses paid by your employer
• Have started working from home due to the coronavirus pandemic
• Have encountered higher costs since working from home. Tax relief for the full tax year will be worth either £60 or £125, depending on the rate of income tax you pay.
You can claim tax relief on £6 a week; if you pay the 20% basic-rate income tax that will mean a gain of £1.20 a week (20% of £6) or £60 a year.
If you’re a higher-rate taxpayer, the tax relief you receive will equate to a gain of £2.40 a week (40% of £6) or £125 a year. If your employer chooses to give you the working from
The government’s eligibility tool will check all of these facts. To proceed, you must have a Government Gateway user ID and password – but if you don’t already have one it will guide you to the right place to create one. For the next step, you simply state what date you started working from home. You’ll receive a rebate for the full year even if you don’t know when you’ll be going back to the office and even if you’ve only had to work from home for one day.
The government has recently made it much easier for those working from home to claim tax relief worth up to £125 to help cover the extra costs of things such as stationery and some household bills.
If your claim is successful, your PAYE tax code will be changed, which means you’ll be able to earn more before tax payments kick in. If you started working from home before 6 April 2020, this will take into account any tax relief owed for the 2019-20 tax year as well.
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