Working from home


WORKING FROM HOME

Did you know you can claim expenses and obtain tax relief if you are working from home?

Working from home

This applies both to self-employed and directors of SME’s. This also applieeds to employees who have been part-furloughed and need to work from home due to the pandemic.

Working from home, how much can you claim?

HMRC have set a limit if £6 per week as an allowance for all taxpayers who are working from home. Furthermore there is no need to supply receipts.

To apply for this tax relief applications can be made through the HMRC web site htpps://www.gov.uk/tax-relief-foremplyees/working-at-home

For the tax payers who are running a business from home and occupy a dedicated room as a workshop or office may claim more than the £6 per week allowance. You may need to justify the amount claimed, by proportioning the total costs of running their homes, to the percentage of rooms designated to the business.

Care must be taken when claiming the higher amounts as important reliefs may be at risk if the property is owned. Professional advice should always be obtained from a competent accountant or tax specialist.

HMRC have also recently reminded employed taxpayers that other work related expenses such as laundering uniforms, subscriptions to trade bodies and unions can also be claimed and tax relief obtained.

EMPLOYING STAFF FROM OVERSEAS

Immigration and working visa rules are changing from January 1 2021 to a points based system.

Following Brexit which ends freedom of movement between EEC countries and the UK, excluding Ireland, all employers will need to obtain permission from the Government before the perspective employee will be granted the appropriate visa.

Existing employees from EEC countries and from Switzerland can apply under the EU settlement scheme and the deadline for applications is 30 June 2021.

Oversees Workers

There are many different rules applying to each type of worker. For example skilled workers must:

  • have a job offer from a Home Office licenced sponsor
  • be able to speak English at a certain level
  • that the job offer requires a skill level equivalent to GCE A Level and
  • will receive a minimum salary of £20480 per year.

For full guidance visit https://www.gov.uk/guidance/immigration-rules

Other categories of workers apply, and full information is available from this website

As in every case this information is supplied as a guide and appropriate specialist advice should always be obtained before taking any action.

Further queries may be sent to mike@abmaccountant.co.uk or please feel free to complete our contact form.

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