What is this £312 tax rebate people keep talking about for an employee?
You may have had to work from home during the coronavirus pandemic in tax year 2020/2021 and tax year 2021/2022 as a requirement from your employer. This will then mean additional household costs to have been incurred. It may be for a few days, weeks or months. There was a relaxation of the normal home working rules for employees in these tax years and employees had the ability to claim the full £312 in the tax year if their employer did not pay this via payroll, by logging into a microsite on the HMRC website, and registering for this allowance.
It would need to be done twice – once for 2020/2021 and again for 2021/2022 if you were required to work from home, and not just chose to work from home. HUGE difference.
But what if you are self-employed and employed?
If you are an employee as well as self-employed, it is not too late to claim the working from home allowance if your employer required you to work from home during the tax year 2021/22 for covid purposes, and it was not your normal place of work for them, as you have to complete a self-assessment tax return.
You would complete the employment section with details from your P60 (or your P45 if you’ve left during the year) and that will detail out your gross pay and your PAYE tax paid, plus any other benefits you may have received. If you go to the expenses section of the employment page, that is where you can put in the £312 of working from home allowance if your employer required you to work from home during 2021/2022, because of COVID. It's too late now to go forward, because it’s not on offer for the tax year 2022/2023, but some people panic that they’ve missed out as they did not apply for it in the tax year. Panic yea not – as you have to so a self-assessment tax return, that is where you apply for the allowance.
Don’t worry about the people that say, “Oh, it’s too late now.” If they’re only PAYE and they don’t have to do tax returns, it is too late for them, but it’s not too late for you. If you have any issues, any problems, any questions, feel free to contact us.