• Friday, April 19, 2024

Business

More work from home employees use the new online portal to claim tax relief

Photo: iStock

By: Pramod Thomas

THE new online portal to claim tax relief for employees working at home has received more than 54,800 claims so far.

Launched on 1 October, the online portal was set up to process tax relief on additional expenses for work from home employees.

From 6 April 2020, employers have been able to pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home.

Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

Eligible taxpayers can claim tax relief based on the rate at which they pay tax. Once the application has been approved, the portal will adjust an individual’s tax code for the 2020 to 2021 tax year.

The employee will receive the tax relief directly through their salary and will continue to receive the adjustment until March 2021.

“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,” said Karl Khan, HMRC’s interim director general of customer services.

HMRC is also reminding employed workers, for example healthcare workers and care home staff, that they can also claim tax relief on work-related expenses, including cleaning their work uniforms.

Employees who clean, replace or repair uniform or tools, or pay fees and subscriptions for their work can apply online directly to HMRC and see instantly if they are eligible for tax relief on work expenses.

In 2018 to 2019, more than 500,000 customers applied for the tax relief using an agent. But those who are paid through Pay As You Earn (PAYE) can claim directly to HMRC and keep all of the money which they are entitled to.

Customers claiming tax relief for working from home can apply here.

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