WFH expense claims portal

working from home

Over 50,000 taxpayers have used a new online portal to claim tax relief for working at home during the pandemic which launced on 1 October. 

 

It is designed to be easy to use and has been set up to process tax relief on additional expenses for employed workers who have been told to work from home by their employer to help stop the spread of coronavirus.

 

From 6 April 2020, employers have been able to pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home. Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

 

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). Higher rate taxpayers would receive £2.40 a week (40% of £6 a week). This means taxpayers could reduce the tax they pay over the course of the year by £62.40 or £124.80 respectively.

 

Employees do not need to provide evidence to show their bills have increased unless they are applying for tax relief on costs above the £6 per week flat rate, in which evidence of the increased costs may be required.

 

HMRC is encouraging individuals claiming tax relief for working from home to apply directly via the portal. Agents are not able to use the new service to apply for the relief on a client’s behalf to ensure that individuals receive 100% of the tax relief that is due.

 

Once the application has been approved, the online portal will adjust an individual’s tax code for the 2020 to 2021 tax year. Successful claimants will receive the tax relief directly through their salary and will continue to receive the adjustment until March 2021.

 

HMRC is also reminding employed workers, for example healthcare workers and care home staff, that they can also claim tax relief on work-related expenses, including cleaning their work uniforms. Employees who clean, replace or repair uniform or tools, or pay fees and subscriptions for their work can apply online directly to HMRC to see if they are eligible for tax relief on work expenses.

 

To check if your eligible, please go to https://www.gov.uk/tax-relief-for-employees/working-at-home