When the pandemic hit, millions of people across the UK started working from home.
While many have seen some benefits such as avoiding lengthy commutes and having more time with families, it has also seen a rise in household costs. At a time when bills are rising, home workers are now having to pay for heating and electricity at a time they'd usually have been out of the house.
Some relief has come in the form of a tax break. The government says people working from home can claim up to £140 per year - and the relief is available even if you only work from home some of the time.
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However, HMRC has now issued a warning to people that the rules have recently changed and it could result in a prosecution if you break them. From April 6, 2022 you can no longer claim tax relief if you choose to work from home, Hull Live reports.
What does the new guidance say?
During the covid pandemic the Government urged people to work from home if possible. This led to a change in the tax rules for home-working which meant anyone who worked at least part of the week at home could get additional help.
However workers across the UK only had until the end of the financial year on April 5 to claim the allowance, worth up to £125 in total for the 2020/21 and 2021/22 tax period, under the amended eligibility rules.
This has now changed once more as the country gets back to living with covid. New guidance 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.” But it adds: “To claim tax relief, you cannot have just chosen to work from home.”
It insists: “You must ensure you meet the rules for claiming, as you may be prosecuted if you deliberately give incorrect or misleading information."
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 can visit here
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