People working from home could face HMRC bill | | U.Ok.Finance News
HMRC is set to crack down on people who’ve incorrectly claimed tax reduction for working from home. While many had been entitled to this reduction during the peak of the pandemic, modifications within the guidelines imply that some might no longer be eligible and could now face compensation calls for.According to the Telegraph, those that continued to say with out reassessing their eligibility may be hit with hefty payments from HMRC.Tax knowledgeable Andy Wood from Tax Natives defined to the publication: “The criteria for claiming this relief changed following the Covid-19 pandemic. Many people who were eligible during the pandemic may no longer qualify today, so it’s important not to assume continued entitlement without checking.”To help taxpayers, the Gov.uk web site affords a free online checker device to find out present eligibility for the tax reduction.Basic-rate taxpayers are allowed to say a flat charge of £6 per week for elevated prices incurred whereas working from home, similar to greater heating or electrical energy bills. This reduction will also be backdated for up to 4 earlier tax years.During the pandemic’s peak, round 800,000 workers took benefit of this reduction, saving up to £125 every, as reported by HMRC.However, since April 5, 2022, solely those that are required to work from home as a result of their employer lacks an workplace, or they must stay far from the workplace as half of their work.HMRC has issued a warning to these working from home: if you’ll be able to work from an workplace however select to not, you might be incorrectly claiming tax reduction and could be pressured to repay it. With many nonetheless working remotely, HMRC is urging warning.Additionally, HMRC is advising these eligible for the reduction to be cautious of third-party firms offering to say it on their behalf, typically taking a vital cut in charges.HMRC advises claiming on to keep away from these pointless prices, stating on social media: “Don’t get caught out by ads promising quick tax refunds for working from home. Always check if you are eligible before making a claim. Avoid agent fees by claiming directly with HMRC.”If an company makes an incorrect declare in your behalf, you will be answerable for the error and required to repay the total quantity.
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