HMRC warning: Britons eligible for £125 reduction on Income Tax – act now
HMRC provide advice on self-employed tax returns
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Eligible taxpayers are able to claim tax relief on certain expenses if they have been forced to work from home by their employer as a result of the COVID-19 pandemic. Last year, HMRC launched an online portal to assist workers even further, who are looking to claim a reduction on their Income Tax. Upon its initial launch in October 2020, over 54,800 new tax relief claims had been made through HMRC’s new online portal.
From April 6, 2020, employers have been able to pay their workers up to £6 a week tax-free to cover any extra costs if they have been working from home.
Any employees who have not received this additional financial support for home working from their boss can apply directly to HMRC for tax relief.
Taxpayers can get tax relief depending on the rate at which they pay that tax, with HMRC using an example to clarify how the average worker would receive this support.
On its website, the tax body stated: “If an employed worker pays the 20 percent basic rate of tax and claims tax relief on £6 a week, they would receive £1.20 a week in tax relief (20 percent of £6 a week) towards the cost of their household bills.
“Higher rate taxpayers would therefore receive £2.40 a week (40 percent of £6 a week).
“Over the course of the year, this could mean taxpayers can reduce the tax they pay by £62.40 or £124.80 respectively.”
HMRC’s Interim Director General of Customer Services, Karl Khan, outlined how the tax body is making claims easier to process for taxpayers.
Mr Khan said: “We want everyone to get the money that they are entitled to, so we’ve made the online service as easy to use as we can – it takes just a few minutes to make a claim.”
Earlier this year, HMRC confirmed 550,000 people had already claimed and were benefitting from the tax relief as of May.
This emphasises the growing number of people who are looking for support for the 2021/22 tax year.
At the time, Myrtle Lloyd, HMRC’s Director General for Customer Services, outlined the good this tax relief scheme does for many hard-working taxpayers.
Ms Lloyd said: “Half a million people have already reduced their Income Tax this year by up to £125, by claiming tax relief on their working from home expenses.
“We want everyone who’s eligible to benefit, so we’ve made it quick and easy to do online.”
As well as the launch of the new portal, Ms Lloyd encouraged home workers to reach out to HMRC as soon as possible for tax relief support.
She added: “Check if you’re eligible and apply at GOV.UK by searching ‘working from home tax relief’.
“HMRC is continuing to help and support people affected by the pandemic.”
After a taxpayer’s application has been approved, HMRC’s online portal will adjust their tax code for the next tax year.
This means that tax relief will be paid directly into their salary up until March 2022.
Furthermore, HMRC will accept backdated claims of up to four years so anyone working from home is encouraged to act now.
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