HMRC warning to home workers as tax break rules change

When the pandemic hit, thousands and thousands of individuals throughout the UK began working from house.

Whereas many have seen some advantages corresponding to avoiding prolonged commutes and having extra time with households, it has additionally seen an increase in family prices. At a time when payments are rising, house staff at the moment are having to pay for heating and electrical energy at a time they’d often have been out of the home.

Some reduction has come within the type of a tax break. The federal government says individuals working from house can declare as much as £140 per 12 months – and the reduction is offered even for those who solely work at home among the time.

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Nonetheless, HMRC has now issued a warning to folks that the foundations have lately modified and it may lead to a prosecution for those who break them. From April 6, 2022 you may now not declare tax reduction for those who select to work at home, Hull Reside experiences.

What does the brand new steerage say?

In the course of the covid pandemic the Authorities urged individuals to work at home if doable. This led to a change within the tax guidelines for home-working which meant anybody who labored not less than a part of the week at house may get extra assist.

Nonetheless staff throughout the UK solely had till the tip of the monetary 12 months on April 5 to say the allowance, price as much as £125 in complete for the 2020/21 and 2021/22 tax interval, underneath the amended eligibility guidelines.

This has now modified as soon as extra because the nation will get again to dwelling with covid. New steerage on GOV.UK states: “You can claim if your employer has not already paid your expenses and you have additional household costs as a result of working from home.” However it provides: “To claim tax relief, you cannot have just chosen to work from home.”

It insists: “You will need to make sure you meet the foundations for claiming, as you could be prosecuted for those who intentionally give incorrect or deceptive info.”

To claim for the new tax year 2022/23, one of the following must also apply:

  • there are no appropriate facilities available for you to perform your job on your employer’s premises
  • the nature of the job requires you to live so far from the employer’s premises that it is unreasonable for you to travel to those premises on a daily basis
  • you are required, under government restrictions, to work from home

What can I claim for?

According to the government those who still quality may be able to claim tax relief for:

  • gas and electricity
  • metered water
  • business phone calls, including dial-up internet access

You cannot claim for the whole bill, just the part that relates to your work.

If you still qualify how much you can claim?

You can either claim tax relief on:

  • £6 a week from 6 April 2020 (for previous tax years the rate is £4 a week) – you will not need to keep evidence of your extra costs
  • the exact amount of extra costs you’ve incurred above the weekly amount – you’ll need evidence such as receipts, bills or contracts

You’ll get tax relief based on the rate at which you pay tax. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week you would get £1.20 per week in tax relief (20 per cent of £6).

To find out if you are eligible to make a claim you may go to right here

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