HMRC has recently launched a new online portal that allows workers to claim tax relief for working at home, with more than 54,800 making a claim.
Launched on 1st October, it has been created to process tax relief on additional expenses for employed workers who have been told to work from home by their employer during the pandemic.
Eligible taxpayers can claim tax relief based on the rate at which they pay tax. For example, if an employed worker pays the 20% basic rate of tax and claims tax relief on £6 a week, they would receive £1.20 a week in tax relief (20% of £6 a week) towards the cost of their household bills. Higher rate taxpayers would therefore receive £2.40 a week (40% of £6 a week).
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Email JaimeOver the course of the year, this could mean taxpayers can reduce the tax they pay by £62.40 or £124.80 respectively.
Once the application has been approved, the online portal will adjust an individual’s tax code for the 2020 to 2021 tax year. The employee will receive the tax relief directly through their salary and will continue to receive the adjustment until March 2021.
Those who clean, replace or repair uniforms or tools, or pay fees and subscriptions for their work can apply online via HMRC’s website to see instantly whether they are eligible.
To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.