People who work from home urged to ‘backdate’ £700 | European Markets

Individuals who work from home may get as a lot as £700 a yr back from HMRC in the event that they backdate a tax allowance they’re owed for the previous 4 years in addition to this yr.

The self-assessment tax return deadline from HMRC signifies that at this time is the final probability to submit a declare for working from home for the 2023-2024 tax yr if you happen to usually file a tax return.

And within that, there’s a option to declare back £6 a week if you need to work from home, which you declare as half of your tax return, which you’ll be able to backdate for the previous 4 years.

However if you happen to miss at this time’s deadline, don’t fret, as you may nonetheless make a declare in future and backdate the declare for one more 4 financial years.

The allowance helps meet the fee of electrical energy, heating, or broadband incurred by working from home.

For those who don’t submit a self-assessment tax return, you may nonetheless declare the money back immediately from HMRC through the gov.uk web site, right here.

However the catch is that you just’re solely eligible if you need to work from home, akin to in case your employer makes you’re employed from home otherwise you dwell too removed from the workplace to have the ability to commute in.

For those who select to work from home, you received’t be eligible for the tax aid.

The Authorities explains: “You may be able to claim tax relief for additional household costs if you have to work at home for all or part of the week.

“You can claim tax relief if you have to work from home, for example, because your job requires you to live far away from your office; your employer does not have an office.

“You cannot claim tax relief if you choose to work from home. This includes if your employment contract lets you work from home some or all of the time; your employer has an office, but you cannot go there sometimes because it’s full.”

So, you wouldn’t be eligible for the money if in case you have a everlasting working-from-home contract.

The taxman will allow you to declare both the precise quantity you spent on cellphone calls, gasoline, and electrical energy for work or a flat £6 a week price, which might equal £312 throughout a full yr. Your tax would then be taken off at your income tax price up to £140. For those who declare for the present tax yr and the 4 previous years, that is £700 in tax aid you could possibly get.

The Authorities provides: “You possibly can solely declare for issues to do together with your work, akin to business cellphone calls, gasoline and electrical energy to your work space. You can’t declare for issues that you just use for each personal and business use, akin to rent or broadband entry.

“You can claim for this tax year and the four previous tax years.”

You’ll then get tax aid primarily based in your present income tax price.