Households in the UK are being urged to apply for the £125 working from home tax relief, as the scheme looks set to be scrapped.
Motley Fool reports that even for those who have worked one day at home during the pandemic, they will be eligible for the £125 that is to cover the costs involved in WFH, which could come in very handy with increasing energy and cost-of-living prices.
Taxpayers can claim the WFH relief from HM Revenue & Customs (HMRC), but it is important to get a move on before the scheme is axed.
The government is reviewing exactly who will be eligible for the tax relief and how much you can get after £500 million has been dished out in help throughout the pandemic, which is up from the £2 million a year it costs the government to run the scheme.
After the government relaxed the rules at the start of the COVID-19 crisis, many people applied for relief to help with rising costs as a result of working from home, and the amount of money that could be claimed also rose from £4 to £6.
For basic taxpayers, the relief is worth 20 per cent, which means they will get £1.20 per week, which adds up to £62.40 over a year for those earning between £12,500 and £50,000. Higher rate taxpayers will get a relief of 40 per cent, or £2.40 per week/£124.80 per year.
How to apply
HMRC’s online tool will help you submit a claim, and you can backdate claims for up to four years unless your employer is already covering your WFH expenses. You also can’t claim if you’re self-employed – since you work for yourself you can claim expenses on your tax return.
You will also have needed to be told by your employer to work from home and not come into the office to be eligible.
If your application is approved, your tax code for 2021 to 2022 will change and you’ll see the relief come directly through your salary – so it is not a one-off payment.
If you’re looking for tax accountants in Manchester, talk to us today.