People working from home during the pandemic can claim tax relief by using a new online tool from the government.

The online portal allows employees to claim expenses. Items you are allowed to claim for include expenses for working from home include:

  • Repairing or replacing small tools needed to do a job (such as scissors or an electric drill)
  • Cleaning, repairing or replacing specialist clothing (such as a branded uniform)
  • Business mileage, travel and overnight expenses
  • Professional fees
  • Subscriptions

Employees can claim tax relief based on the rate that they pay tax. The amount of money you can claim depends on your tax code, with the highest rate of tax you pay being used to make the automatic calculation.

For example, those paying the standard rate of of 20 per cent, £1.20 per week can be claimed. Those paying 40 per cent can claim £2.40 per week and those at 45 per cent can claim £2.70 per week.

Are you eligible for working from home tax relief?

Once the application has been approved, the online portal will adjust the person’s tax code for the 2020-2021 tax year.

The employee will receive the tax relief directly through their salary and will continue to receive the adjustment until March 2021.

The tool is one of the many efforts by HMRC to try and help people who may have been impacted by the coronavirus crisis.

The online tool is available on the government website. You will need to tell them about how much tax you’ve paid; what you’re claiming for; if you’re trying to get cash back for more than £2,500 in one tax year or have completed a self-assessment tax return.

Claims can be made from the date you began working from home; you can claim work-related expenses for any of the previous four tax years.

You’ll also be able to claim once this tax year has ended (from April 21) and receive a one-off payment instead of monthly amounts.

If you want help to make your life easier when it comes to taxes, contact us today.

Guidon Group Ltd

t: 01642 927265                                  e: info@guidongroup.co.uk

Gloucester House, 72 Church Road
Stockton-on-Tees. TS18 1TW

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