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Finances | 1 December 2020

Do you know about the working from home tax allowance?

With so many people working from home since the pandemic started, I've been flagging that you can claim tax relief on £6 a week because of increased expenses (energy usage, etc) 🔎

It's since been confirmed by HMRC that you can claim for tax relief for the whole year, even if you've only worked one day from home!

Over a full tax year, that would mean you pay £62.40-£124.80 less in tax depending on your tax-band!

Your employer can pay you £6 a week more, tax-free, or you can claim the tax relief yourself.

NB. This benefit is for where your employer is asking staff to work from home. If you’ve volunteered to work at home, or you choose to, you can't claim tax relief on your bills.

HMRC's new online portal

To help workers claim tax relief on this and other job-related expenses, HMRC has launched a new site with more info and a tool to check if you can claim.

Go to the portal and you'll see the 'Working from home' section.

How to claim

As you'd expect there's a bit of admin. You can claim on your annual tax self-assessment form or fill out a P87 form.

Under 'Using your home as an office' put £6 a week for this period and £0 for your employer (assuming your employer's not giving you anything).

HMRC will adjust your tax code so you pay less tax over the year. You won't get a cheque! 😁

These little tax allowances can often be gems that give you a small (or sometimes big) win, so I'll carry on looking for and sharing them in your Snoop feed! 👍

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