BRITS may ask for money to cover the cost of working from home – you only need to have worked at least a day from your home office to do so.
Now that 2021 is drawing to a close, it’s worth taking advantage of all those times you were stuck working in the kitchen or at the dining room table.
Millions of people who worked from home could claim money as early as January, to help cover additional heating costs, especially during cold bites.
Households could be clamoring for increased payments just at the start of the New Year – and that’s welcomed by many who are pinching their money now that Christmas is over and dusted off.
Many of us will start to think about returning to work after the holiday break.
But the increase in cases of the Omicron variant of the coronavirus has again forced workers to return from offices this month.
This simple little factor however, could add an additional £ 131 to energy bills nationwide, according to Energyhelpline
Energy prices have already skyrocketed at the end of this year, pushing up bills for hundreds of households.
There are even warnings that they could increase further in the New Year.
Working from home can increase your energy bill when you turn on the heat more and plug in laptops and monitors.
But you can claim money to help cover that cost – worth up to £ 125.
Almost a million workers have already claimed the money, as has anyone who worked from home, even for a single day.
You can claim tax relief for working from home if your employer has asked you to work from home.
It is believed that up to three million people are eligible for the tax refund, so millions are missing.
Claims can also be made for previous years, so anyone who has never claimed and was eligible within the past four years could be owed up to £ 500 in total.
Now that the year is drawing to a close, it’s worth making your claims for the past year, especially since we’ve seen several work-from-home orders rolled out – so it’s worth claiming the time that you were inevitably home.
How Much is the Home Tax Relief for Working?
You can claim tax relief of £ 6 per week for the current tax year.
If you are subject to the base rate, the relief is 20%, which means you will receive £ 1.20 per week.
Over the course of the year that rises to £ 62.40, for anyone earning between £ 12,500 and £ 50,000.
If you pay a higher tax rate, your relief will be 40% or £ 2.40 per week.
This amounts to £ 124.80 for the year and is available to anyone making more than £ 50,000 per year.
You can also claim for last year (the tax year runs from April to April) if the same applies – your employer has asked you to work from home, even for one day.
HMRC will in fact accept backdated claims up to four years
You will not be able to claim the tax refund if your employer already covers your home working expenses.
You also cannot claim if you are self-employed – since you work for yourself, you can report the expenses on your tax return.
How do I get work from home tax relief?
HMRC has a handy online tool to help you submit a claim for this year and last year.
You will need a Government Gateway user ID and password, which you can create online in under 10 minutes.
Make sure you have your National Insurance Number and a recent payslip, P60, or a valid UK passport handy.
Once the request is approved, your tax code for tax year 2021 to 2022 will be adjusted automatically.
You will then see the tax relief directly on your salary and will continue to receive the adjustment until April 5, 2022.
You won’t get a one-time payment when claiming for that year, but it will be included in your weekly or monthly payments from your employer.
But for last year’s claims, you will receive money as a lump sum through your paycheck.
Here’s how improper use of your boiler could increase your heating bills.
And your radiators too – and how to fix them.
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