Individuals who work remotely from home have the opportunity to claim up to £140 from Her Majesty’s Revenue and Customs (HMRC) if they act swiftly. The approaching self-assessment tax return deadline set by HMRC means that this week marks the final chance to submit a claim.
The deadline is fast approaching for those looking to make a claim for working from home. The option to claim back £6 per week for home office expenses is available, which individuals can include in their tax return. This allowance aims to assist with costs such as electricity, heating, or broadband that are incurred while working remotely from home.
If individuals do not typically file a self-assessment tax return, they can still claim the money directly from HMRC through the official government website. However, eligibility for the claim is limited to those who are required to work from home, such as if it is mandated by their employer or if commuting to the office is impractical due to distance.
A notable point to consider is that if individuals choose to work from home voluntarily, they are not eligible for the tax relief. The government specifies that tax relief can be claimed for additional household costs incurred when working from home out of necessity, not preference.
For individuals with a permanent work-from-home arrangement, the option to claim either the exact amount spent on work-related expenses or a flat rate of £6 per week is available. This could amount to up to £140 in tax relief over the course of a year, dependent on the individual’s income tax rate.
The government further outlines that the tax relief claim should relate strictly to work-related expenses, such as business phone calls or specific utility costs for the work area. Expenses used for both personal and business purposes, like rent or general broadband access, are not eligible for tax relief.
If a worker is on a permanent work-from-home contract, they are ineligible for the tax relief scheme. The amount of tax relief that can be claimed is calculated based on the individual’s income tax rate, with potential returns of £1.20, £2.40, or £2.70 per week for tax rates of 20%, 40%, or 45%, respectively.
In conclusion, for those who meet the criteria and act promptly, the opportunity to claim up to £140 in tax relief for remote work-related expenses is available. It is essential for individuals to assess their eligibility and submit any claims before the self-assessment tax return deadline to maximise their potential savings.