How you can apply Government tax relief working from home 2021?

government tax relief working from home

This is how you can apply Government tax relief working from home, the workers who were made by the government to be at work home due to the Covid pandemic may be eligible for relief from taxes up to £250 pounds.

Work schedules have changed for a lot of people affected by this Covid pandemic.

In the midst of the initial lockdown in 2020, more than half of all adults employed in working throughout the UK were working from home, as per the Office for National Statistics (ONS).

Working at home can have its advantages such as avoiding the commute to work However, it isn’t without its costs, including higher energy and heating costs.

This expense is offset through an initiative of the government that allows workers to claim funds back from costs incurred while working from home as a result of coronavirus.

Here’s the way to determine who is eligible to receive the relief from tax relief offered by HMRC

What amount can you claim via the working tax relief for home?

The maximum amount of money that is available is £125 per year. This means that during the tax years of the two the UK worker might be entitled to £250 under the scheme of the government.

The amount is contingent on the tax rate that employees pay.

There are two methods of applying for the tax relief: either based on the presumed £6 each week or through providing proof of how much extra expense was incurred during this period.

Basic rate taxpayers may receive 20% of £6 tax, which is calculated at £1.20 each week or £60 per year, through the tax relief scheme for working from home. relief scheme.

Higher rate taxpayers are eligible to receive 40% of £6 tax, which is calculated at £2.40 each week or £125 per year, through the tax on working from home relief scheme.

Read also: Does Tax Rebate Working From Home Executed in UK?

Who is eligible to receive tax relief for working from home?

Anyone who was asked to work at home by their employer during the Covid epidemic can claim additional fiscal relief through the federal government.

The scheme provides flexible, full-time, and part-time work arrangements for those who have been instructed to work at home in the course of the effort of the country to fight the disease.

Anyone who’s been asked to work from home by their employers even if it’s for just one day may apply to receive tax relief during the financial years.

Workers are not eligible for the tax exemption if they decide to work at home.

The benefit is not available to those who submit self-assessment returns because there’s a different method to claim for additional costs using the government’s self-assessment system.

How can you get the tax relief for working from home exemption through the UK Government?

UK employees can apply for tax relief when expenses are incurred while working from home through the Government’s special website.

Prior to making a claim, employees are required to create an account with the Government Gateway User ID that is required to access the online portal, along with the password.

To register for an account on the HMRC website, users will require to have their National Insurance number and a recent payslip, £60, or a valid passport.

The relief will cover additional expenses associated with working at home during the outbreak including water heating, heating content insurance, business calls, and broadband.