The Government body has shared some advice for people who work from home
Brits working from home have received an important warning from HM Revenue and Customs (HMRC). The tax authority cautioned people to “don’t get caught out”.
In a message posted on social media platform X, HMRC provided guidance regarding expense claims. Those who work from home may be eligible to claim tax relief on certain costs.
This applies only to work-related expenses, such as business telephone calls, and gas and electricity used for your workspace. Claims can be made for the current tax year plus the previous four years, which means you could be due a refund.
You have the option to either claim tax relief on £6 weekly or the precise amount you’ve incurred. Your tax relief will be calculated based on your tax rate, so if you’re on the 20 per cent basic rate and claim relief on £6 per week, you’d receive £1.20 weekly.
However, it’s crucial to fully grasp the system before submitting a claim. On X, HMRC stated: “Thinking of claiming working from home expenses?
“Take a closer look and check if you’re eligible before making a claim directly with HMRC. Find out more about what to watch out for.”
On GOV.UK, it cautioned that certain companies may propose to submit claims on your behalf to earn commission. It stated: “Don’t get caught out by online adverts and tax refund companies who offer to make work expense claims for you so they can claim a commission.
“If it turns out you aren’t eligible to claim, you’re still responsible for any claims made on your behalf.” If you qualify, you should apply directly through HMRC to receive 100 per cent of the funds you’re entitled to.
It is not just people working from home who can claim. If you meet the eligibility criteria, you might be able to claim tax relief for the following types of work expenses:
- Working from home
- Uniforms, work clothing and tools
- Vehicles you use for work
- Professional fees and subscriptions
- Travel, subsistence, and overnight expenses
- Buying other equipment
Claim directly with HMRC
GOV.UK says: “It’s fast, free and simple to claim work expenses with us directly via GOV.UK. You won’t have to pay any agent fees or commission if you do it yourself.
“For most expense claims, you will need to provide evidence to support your claim. The evidence will vary depending on the expense type you are claiming.
“It’s quick and easy to check what evidence is required using our eligibility checker page, and you can submit your claim and evidence online or through the post.”
Things to keep in mind before claiming:
- Have you got evidence to back up your expense claim? Customers who want to claim work expenses may be asked to provide supporting evidence to prove their eligibility before we progress the claim
- Tax relief on expenses won’t necessarily lead to a repayment. Some expenses are automatically coded through to the following year
- Expenses must be completely work-related and necessary for you to do your job. You can’t claim for any expenses that your employer has already reimbursed
- If you had an eligible claim in a previous job but the terms are different in a new job, then you may have incorrect items in your tax code
- If your expenses are under £2,500 and you’re completing Self Assessment, you can save time by using HMRC’s quick digital claim service
For more information, see the Government website here.
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