Business Blog Site

Staff who claimed house place of work tax reduction all the way through the pandemic may just finally end up paying extra tax this yr

Staff who’ve been claiming “House Workplace Aid” all the way through the Covid 19 Lockdown will have to be urgently reviewing their tax codes to explain whether or not HMRC have integrated the relaxation inside their realize of coding.

Robert Salter, a shopper tax director with main tax and advisory company Blick Rothenberg stated: Staff will have to be reviewing their PAYE tax codes to explain whether or not HMRC have integrated the house place of work reduction throughout the realize of coding.

“If that is so, except they’re nonetheless eligible for the relaxation in 2022/23 – they will have to touch HMRC to get the awareness of coding corrected. Differently, they’ll have further tax to pay on the finish of the tax yr.”

Robert added: “The Govt at ease the principles referring to house place of work operating and the related eligibility for claiming house place of work reduction for the 2020/21, 2021/22 and 2022/23 UK tax years. In impact, because of Covid, other folks can declare the £6 a week tax reduction in complete for every of those tax years, the place they just have been required to work at home for a restricted duration in every of those tax years. For instance, in case your employer required you to work at home all the way through particular lockdowns for a couple of weeks, you have been entitled to assert tax reduction of £312 for the yr (52 weeks x £6 a week), except your employer coated your house place of work prices.”

Robert stated: “Alternatively, this was once a short lived leisure of the principles at the a part of HMRC. As such, the house place of work reduction is simplest to be had from sixth April 2022 onwards, if
your employer in particular calls for you to paintings from a house place of work – e.g., to prevent the unfold of Covid or as a result of your task has been ‘relocated’ and now’s contractually seemed 100% as a house place of work function.”

See also  Shipping & logistics is the United Kingdom’s quickest rising sector – however wages lag at the back of

Robert added: “If, as an example, your employer merely now lets in group of workers to operating flexibly – i.e., being within the place of work or operating from house because it fits every particular person, the house place of work reduction ceases to be to be had for the 2022/23 tax yr and no tax reduction is to be had for the prices which one incurs from operating from house on this state of affairs.”