Revenue Online Working From Home Tax Relief

Oct 13 2020 10 14 bst 54 800 customers claim tax relief for working from home hm revenue and customs hmrc has received more than 54 800 claims.

Revenue online working from home tax relief. If you have been asked to work from home because of the covid 19 emergency you may be able to claim tax relief against the cost of home expenses. Completing your tax return. She retains the utility bills that relate to her claim for six years. To process these claims in october 2020 hmrc set up a new dedicated working from home microservice that will automatically apply the whole 2020 21 tax year s relief via your tax code making claiming the whole amount very easy.

Enter on line 22900 the allowable amount of your employment expenses from the total expenses line of form t777. You ll get tax relief based on the rate at which you pay tax. Complete the calculation of work space in the home expenses portion of form t777 statement of employment expenses. At the end of the year niamh completes her income tax return for 2020.

Capital gains tax cgt your employee might use part of their home for eworking. For example if you pay the 20 basic rate of tax and claim tax relief on 6 a week you would get 1 20 per week in tax relief 20. How to claim the tax relief. Enter the lower amount of line 24 or 25 of form t777 at line 9945.

Niamh pays tax at the higher tax rate 40 and she will receive 24 60 as tax relief. Local property tax lpt your eworking employee will not receive a reduction on lpt due if they use a room in their home to carry out work related activities. E worker relief is a tax relief on expenses which people may incur while working from home. Anyone making a claim for this tax year who hasn t already put in a claim can use it.

She claims 61 50 in other paye expenses. It was announced in budget 2021 that the following expenses will be covered as an allowable home expense for e working tax relief. Hm revenue and customs hmrc has received more than 54 800 claims from customers using a new online portal which allows workers to claim tax relief for working at home.