Written by 10:13 am Wealth Building Views: [tptn_views]

Claim tax back on energy costs when you work remotely

Can you claim a tax refund whenever you work at home? It’s cold, gloomy, and the times are shorter than we might like. Snow has fallen in lots of parts of the UK and plenty of have chosen to work at home during this era to avoid traffic jams and commuting delays.

But together with that comes the fear that energy prices shall be shifted from employers to employees. Working from home uses lots more energy – from making cups of tea to charging mobile phones, laptops, tablets and turning on the sunshine. It all adds up, with higher costs being imposed on those normally present in an office or workplace.

Ofgem, the UK energy regulator, recently raised the cap on energy prices to £3,549 a 12 months for 2 sorts of fuel for the common household in October 2022. This has caused widespread concern to hundreds of thousands of households across the country. In addition, HMRC has closed telephone lines and online services in recent weeks in consequence of technical problems, leaving many Britons stranded with urgent questions on their tax returns.

How much does working from home cost?

A recent survey by the leading tax refund app, Tommy’s Tax, found that fifty% of Brits say the price of living crisis is seriously undermining their personal funds. That’s why many persons are eager to get back the tax they deserve in the present climate.

According to the Office for National Statistics (ONS), half of the working population worked remotely at the peak of the pandemic and related lockdowns, and 84% plan to proceed working from home. In addition, reports show that at current energy price caps, an 8-hour working day from home can cost over £30 a day – an enormous hidden charge.

These costs are hidden, including heating, electricity and broadband costs. Improving tax literacy could provide taxpayers with the means to access their tax returns promptly and help those working from home each permanently and flexibly, says Tommy’s Tax.

understanding tax

The survey by Tommy’s Tax also found that greater than a 3rd of Brits (36%) say tax is a subject of their lives that they know little or no about. Just over 1 / 4 of respondents (26%) said they hadn’t even considered their tax bill.

Tommy’s Tax encourages employees to debate the price of working from home with their employers. It is as much as the employer whether he desires to cover any additional costs incurred in consequence of distant work. The payments are tax-free, so some employers could also be encouraged to make these payments.

The tax refund application also suggests that employees can claim a flat-rate tax credit of £6 per week. This is to assist cover energy costs and other costs related to working from home. Employees needn’t keep receipts to use, nonetheless you should be contractually obligated to work at home – for instance in case your employer doesn’t have a physical office or workspace you need to use.

If employees keep utility bills akin to gas, electricity and web, and are capable of discover any changes which have occurred in consequence of working from home, they’ll claim tax relief on this. This is a more invasive approach, but may end up in a big refund.

Tommy Mcnally, CEO of Tommys Tax, says:

“The recent drop in temperatures has made many realize that there are numerous hidden costs related to working from home. While it could seem to be employees are saving up as a substitute of commuting, they might find yourself paying greater than they anticipate working from home in the shape of gas, heating, electricity, broadband, and so forth. At Tommys Tax we would like to indicate that Brits can claim back tax on just about all of those costs.

“The problem is that there remains to be an enormous knowledge gap on the subject of taxes, and our own research highlights this. It’s more necessary than ever to be well informed about taxes and what employees can claim back on the subject of their job.

“That’s why we’re here to assist employees across the country throughout the method. One of the ways we assistance is by educating clients concerning the various tax credits that individuals are entitled to but don’t benefit from, and that’s where we’re here to assist. Taxes will be boring, confusing and anxiety-provoking, but when implemented the proper way, they’ll really make a difference in people’s lives.”

[mailpoet_form id="1"]