HMRC issues tax warning to people who work from | European Markets

The tax workplace is urging people who work from home to be cautious of claiming aid, as they may finish up footing a hefty invoice.

In some cases, people working from home can declare tax aid from HM Income and Customs (HMRC) for further family prices. Nevertheless, strict standards should be adhered to with a view to qualify.

Adverts have been circulating for tax refund firms offering to make work expense claims on behalf of people, usually in exchange for a commission. Nevertheless, HMRC is warning that in case you’re not eligible for a declare, you will nonetheless be chargeable for any claims made in your behalf, even when they have been submitted by an agent.

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.”

Who can declare tax aid on working from home?

In keeping with HMRC, people could possibly declare tax aid for working from home if:

• Your job requires you to dwell distant out of your workplace
• Your employer doesn’t have an workplace.

If this is applicable, people can solely declare for issues to do with their work, comparable to:

• Enterprise cellphone calls
• Gasoline and electrical energy for his or her work space.

Nevertheless, people can’t declare for issues they use for each non-public and business use, comparable to rent or broadband entry.

Claims might be made for this tax 12 months and the earlier 4 tax years.

You may declare tax aid on £6 a week or the precise quantity you’ve spent. You’ll get tax aid primarily based on the speed at which you pay tax. For instance, in case you pay the 20% primary price of tax and declare tax aid on £6 a week, you’ll get £1.20 per week in tax aid (20% of £6).

Who can’t declare tax aid on working from home?

Individuals can not declare tax aid in the event that they select to work from home. This consists of if:

• Their employment contract lets them work from home some or all of the time
• Their employer has an workplace, however they can’t go there typically as a result of it’s full.

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.”

Individuals can use the Authorities device to examine in the event that they’re eligible to assert tax aid.