Has the COVID-19 hit your job conditions hard? Are you forced to work from home, and your bills are climbing the ladder super fast? The U.K. government can help you with your work from home situation. That’s true; The U.K. government offers tax relief for people working from home due to COVID-19. There are many other things related to your work on which The U.K. government can provide you with tax relief, but first, we’ll see how you can claim tax relief on working from home.
On what grounds can I claim tax relief on working from home?
You could claim tax relief on working from home if you had to work from home the whole week or parts of weeks. You can claim tax relief if you’re working from home due to COVID-19. But you are not eligible to claim tax relief if you choose to work from home.
You cannot claim tax relief on the entire bill; you can only claim your work-related bills.
You can claim tax relief on;
- gas and electricity
- metered water
How much tax relief can I claim on working from home?
- The amount of which you can claim tax relief per week until 2020 has been £4, but since 6th April 2020, you can claim for £6 per week, and you do not have to keep a record of your bills.
- The extra work-related payments that you did, you can claim tax relief on that too. Apart from that £6, you will have to have proof such as bills to claim tax relief.
- The tax relief will depend upon how much you usually pay as tax. Higher rate taxpayers can receive up to £124.
- If you are self-employed, you can still claim tax relief, but it will depend on if you have worked over 25 hours at home per month.
How do I apply for tax relief for working from home?
Claiming tax relief for working from home is simple. Since everything is online these days, you can go to the gov. U.K. website, fill out the questions asked and then your claim will be evaluated.
How will my claim for tax relief be paid to me?
If your claim gets approved, your PAYE code will change, and your taxes will be reduced. Now we will see what other work-related items you can claim tax relief.
On what grounds can I claim tax relief on work-related items?
- You can claim tax relief on items you buy for your job, and the employer does not provide you.
- You must only use those items for your work, not your personal work.
- You cannot claim tax relief on work-related items if your employer pays all the money back to you or if the employer has provided you with the item and you do not like the model; you cannot claim tax relief.
- To claim tax relief, you must be a regular taxpayer, and your claim for tax relief will depend upon the tax rate you paid before.
- You must keep a record of what you spent, and the tax relief claim must be made within four years after the end of the tax year.
- If you are claiming tax relief for the current year, HMRC will adjust your tax code.
Can I claim tax relief on my uniforms and work tools?
Yes, you claim tax relief on uniforms, work clothes and work-related tools.
- You can claim tax relief on repairing or replacing your work tools and your uniforms or unique clothing required for your job, such as boots.
- You can claim tax relief on the actual amount charged for the equipment, but you must present bills.
Can I claim tax relief on vehicles I use for my work?
- Yes, you can claim tax relief on the vehicle you use for your work unless it’s a temporary workplace. You cannot claim tax relief if you use your vehicle to travel to and return from your job.
- The amount on which you can claim tax relief depends on whether you bought or leased the vehicle with your own money or if the vehicle is owned or leased by your employer.
- You cannot claim tax relief separately on fuel, MOT, repairs, road tax and electricity.
Tax relief on Professional fees and subscriptions
- You can claim tax relief on subscriptions or professional memberships that you are obligated to take for your job and the subscriptions to the bodies which are relevant to your job.
- You cannot claim tax relief on professional fees and subscriptions if your employer or anyone else has paid for it and not yourself and if HMRC does not approve the body.
You can also claim tax relief for overnight travelling and food expenses you had to pay for your job. The fees for which you can claim tax relief if you had to pay due to your work requirements include public transport costs, hotel accommodation if you have to stay overnight, food and drink, congestion charges and tolls, parking fees and business phone calls and printing costs.
Claiming a tax relief is also possible for the work-related equipment you buy, such as a computer, as it comes under the type of capital allowance. But even this has some conditions. You can only claim tax relief on the equipment you need for your job, and you solely use this equipment for your employment with the organisation’s policy and not for your personal work.
Conclusion
You can claim a tax relief working from home with some terms and conditions. You can claim tax relief on £6 per week, but you must keep a record and proof of your spending if you want to claim tax relief on over £6. You could not claim tax relief on working from home if you chose to do so. To claim tax relief, you can visit the U.K. government website and fill out the questions asked, and if you get approved, you will receive a tax rebate. You can claim tax relief on several other work-related items such as equipment, vehicles, professional fees and subscriptions.
