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Claim Tax Relief for working from home due to COVID-19

Claim Tax Relief for working from home due to COVID-19

Anyone who has worked from home during the pandemic may be eligible for tax relief up to £125 a year even working for one day from home.

Am I eligible to get tax relief for working from home?

  1. You are entitled to claim the full year tax relief for the amount of £125 if you are required to work from home by your employer even only for one day work.
  2. You can still get the full tax relief for the 2021/22 tax year if you have returned to work in early April 2021 or are planning to return.
  • However, you cannot claim tax relief if you choose to work from home. In addition, if your employer has covered your expenses or paid you an allowance, you are not entitled to claim.
  • If you have completed an annual tax return, you will be able to apply for the tax relief via your Self-Assessment.

The process to claim tax relief for working from home

You need to use the HMRC working from home tax relief portal, where you will be asked a series of questions to check if you are eligible or not. If you have not created any portal account yet, you can do so on the HMRC website, it takes about 10 minutes. You will be provided with a Government Gateway user ID and password.

What documents do I need to create Gateway ID?

To create a Government Gateway ID, make sure to have the following information ready.

  1. Your National Insurance number.
  2. A form of ID such as a recent payslip or P60, or a valid UK passport.
  3. Additionally, if you are claiming an exact amount against your expenses then you will need to provide evidence such as receipts, bills, or contracts.

How much tax relief can I claim?

Each employee can claim up to £125 per year. The amount is made up of either £6 weekly from April 6, 2020, or the exact amount for any expenses incurred in addition to the weekly figure, which you will need the evidence mentioned above for.

Tax relief is calculated at the rate at which you normally pay tax. As an example, if you pay the 20 percent basic rate of tax and your claim for tax relief is £6 weekly, you would get £1.20 per week as tax relief (which is 20 percent of £6) that would result in tax relief of £62.40 a year. Higher rate taxpayers can claim £2.40 a week (40 percent of £6 a week), which would result in £124.80 a year.

How will I get the money?

Once your claim has been approved, your tax code will be adjusted for the 2021/22 tax year. You will get be paid the tax relief through your salary payment.

How to backdate a claim

If you were required to work from home by your employer during the 2020/21 tax year but did not claim for the tax relief, you can still file a claim.

Affordable Pay-monthly Packages

We offer a full range of services to limited companies, solo trader, partnership, charity, LLP, CIC as well as individuals. We have arranged our services into easy to choose packages that suit your needs.

Start-up
£ 50  / Month (+VAT)

This price plan is suitable for the start-up companies who are not VAT registered.

  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Payroll & RTI submission for 1 employee
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • Assisting with correspondence from HMRC and Companies House
  • Unlimited face to face advice and email support
  • 1 Director
  • 1 Shareholder
  • Annual turnover should be less than 80K
Limited Company
£ 100  / Month (+VAT)

This price plan is suitable for the companies who are VAT registered and turnover is less than 100K with a couple of employees.

  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission for up to 2 employees
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • MTD VAT returns submissions – quarterly
  • Unlimited face to face advice and email support
  • 1 Director
  • 1 Shareholder
  • Annual turnover should be less than 100K
Company Pro
£ 150  / Month (+VAT)

This price plan is suitable for the companies who are VAT registered; turnovers are more than 100K and have 2 directors and shareholders.

  • Company formation (if required)
  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission for up to 5 employees (Free)
  • MTD VAT returns submissions – quarterly
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • Unlimited face to face advice and email support
  • 2 Directors
  • 2 Shareholders
  • Annual turnover should be less than 200K
Company Premium
Let's talk.  / 

This bespoke price plan is suitable for the companies who are VAT registered, with more directors, shareholders and employees. Also, annual turnover is more than 200k and requires further bespoke services.

  • Company formation
  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission all employees
  • MTD VAT returns submissions – quarterly
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for the all Directors (Free)*
  • Unlimited face to face advice and email support
  • Flexible and can be discussed
  • Annual turnover should be more than 200K

Add on Services

  1. Personal Tax Returns

    This price plan is suitable for self-employed individuals, landlords and those who need to submit Self-Assessment Tax Returns.

    If you need to submit the Self-Assessment Tax Return, we can offer you competitive prices starting from £150 + VAT. Price can vary according to your nature of income. Please contact us for more details.

  2. Tax Investigation
  3. Business Legal Support
  4. Company Formation
  5. Business Mentoring
  6. ARA accounting services for ATOL & ABTA travel companies

    Our commitment to you is that we’ll ensure all the information we’ve submitted to the Civil Aviation Authority is up-to-date and accurate. 

Taxcare Accountancy was formed to provide Small & Medium Businesses with an affordable, proactive and professional accountancy services…