It’s been a stressful year for millions of people globally. However, if you have started or have to work at home on a regular basis due to the COVID-19 pandemic you may be able to claim tax relief from HMRC for additional household costs.
HM Revenue & Customs have confirmed that they will be continuing this scheme for as long as furlough continues. This is likely to continue onto the 2021/2022 tax year. As millions of people have been forced to work from home, it is likely that a lot of people will be eligible for the offer. However, you cannot claim if you choose to work from home.
How can you claim?
You can claim tax relief for gas, work phone bills, broadband connections to work equipment, water bills and any equipment you may have had to purchase at your own expense.
There are two options when claiming;
• £6 a week of extra costs from 6th April 2020 (without having to provide evidence)
• The exact costs weekly above the amount of £6 (must provide evidence such as bills)
How much tax relief will you receive?
You receive tax relief at the rate at which you pay tax. This is inclusive of the current tax year and the tax bracket HMRC categorises you in. For example, if you pay 20% basic tax rate and claim £6 expenses a week, you will get 20% of £6 = £1.20. However, the higher tax amount you pay normally, you will receive higher tax relief.
You can find out whether you are eligible; here
5 tips to work more productively at home
1. Clear Workspace
Working from home maybe difficult for some, but it’s even harder if there is no dedicated workspace. Allocating a clear workspace will not only help you to become more efficient when working, but you will feel like you’re back in the office. Even if the space you set aside is a small corner or a small desk, this will definitely help to improve productivity.
2. Good internet connection
It can be immensely stressful having to try to fix your connection, or logging and handing tasks in late due to speed. Therefore, having broadband connection that is strong and dependable will save you the stress of having to get systems working, or constantly refreshing the page.
2. Look after yourself
While working from home can be luxurious to some, many find themselves slipping out of their usual routines and loosing track with themselves. It’s important to remember that working from home does not mean more free time, a lot of people tend to get caught up in work and not take breaks.
TAKE a break! Don’t be too hard on yourself- make self-care a priority. Whether that means exercising, work life balance, sleeping, relaxing etc. Make sure you look after you.
4. Free from distraction
Living in a house full of people and working at home can be daunting. It is almost inevitable to be distracted. However, it’s clear to set boundaries with the people you live with and inform them that your working hours are non-sociable hours. Try not to mix home and work duties at the same time.
Social media and television can also play a big part in creating distractions. If you want to work more adeptly you need to free yourself from these kinds of distractions. If you’re really struggling try turning off the tv, or switching your phone off and leave it in a different room.
5. Be realistic
Although these tips teach you how to be more productive whilst working at home, it is not going to be easy all the way through and there will be some setbacks and obstacles at times. The key is to BE REALISTIC if you’re finding it challenging, set personal goals and targets or create a routine that best suits you.
Remember you’re not alone in this, don’t be too hard on yourself if things don’t go your way sometimes, make sure you communicate with someone if there’s a problem and take a breather.
If you need any additional help on tax relief or working from home visit: Gov.uk.
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