HMRC urges people working from home ‘do not get | U.Okay.Finance News
The tax workplace has warned distant staff to be cautious when claiming tax reduction, as they might face a massive compensation invoice. In sure instances, those that work from home can declare tax reduction from HM Revenue and Customs (HMRC) to cowl extra family bills. However, there are strict eligibility necessities that have to be met.Adverts have been circulating from tax refund corporations offering to submit work-related expense claims on people’ behalf, often for a commission. HMRC is reminding taxpayers that if a declare is made incorrectly – even by an agent – the person, not the agent, will likely be held liable for repaying any money owed. In a new post on X, HMRC wrote: “Don’t get caught out by ads promising quick tax refunds for working from home. Always check if you’re eligible before making a claim. Avoid agent fees by claiming directly with HMRC.”Work-from-home tax reduction rulesAccording to HMRC, people could possibly declare tax reduction for working from home if:
If this is applicable, people can solely declare for issues to do with their work, akin to business cellphone calls, and fuel and electrical energy for his or her work space.However, people can’t declare for issues they use for each personal and business use, akin to rent or broadband entry.Claims will be made for this tax yr and the earlier 4 tax years.People can declare tax reduction on £6 a week or the precise quantity they’ve spent. They’ll get tax reduction based mostly on the speed at which they pay tax. For instance, if a particular person pays the 20% fundamental price of tax and claims tax reduction on £6 a week, they’d get £1.20 per week in tax reduction (20% of £6).Who can’t declare tax reduction on working from home?People can’t declare tax reduction in the event that they select to work from home. This contains if:
HMRC added: “Eligibility for the ‘working from home’ relief changed after the end of the COVID-19 pandemic. Just because you were eligible to claim back then, don’t assume you’re still eligible.”People can use the Government device to test in the event that they’re eligible to assert a tax refund.
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