Tax benefits you can reap if you are working from home.
Working from home has become a new normal, especially after the Covid situation which forced many companies to go offline. And the companies that liked this approach switched to offline platforms forever. But did you know that working from home comes with its own set of tax benefits that not many businesses disclose to their workers? This means if you don’t have any access to Accountants in Coventry then you are missing this benefit.
What is the criterion to be eligible for work-from-home tax benefits?
Of course, you can opt for tax benefits but there are some criteria that you need to meet before you become eligible for tax benefits. Those criteria include:
In case your job requires you to stay and work from a faraway location
If your company has no physical office
What makes you not eligible for tax benefits?
If your employment contract gives you the flexibility to work from home occasionally or permanently
If the office you work in is at its full capacity
Fancy learning more? Talk to a Limited company accountant here at Cheylesmore Accountants.
What are you qualify for the tax relief?
In case you meet the eligibility conditions you can get a tax relief of £6 per week HMRC approved allowance or you can apportion the total expenses incurred.
What is the apportioning cost?
It is the expenses used for business and private purposes and the only way you can claim it is by identifying and measuring the cost incurred for business use. You can get the help of Accountants if it seems too difficult to perform on your own.
The costs that can be apportioned are the:
Mortgage interest
Council tax
Metered water tax
Insurance
Light and heat
The easiest way to approximate your expenses is by using the total number of rooms and floor space accounting for the time you spend working from home.
Bonus point
Any amounts that you spend on things that are solely for work use can be claimed in full so do not sleep on this one. And renovation/ building work does not count in which means they are not allowed by the HMRC.
Bottom line
If you also have to work from a remote location due to job requirements or if there is no office to begin with you can get some financial aid with these tax benefits. All you have to do is talk to a skilled Coventry Accountant and get your documents prepared to file for tax relief.
Of course, it might seem like a small thing but if you look at it on a large scale you’ll understand why you should file for your right to get the tax relief that your employer so nicely kept a secret from you.
For more details, you can visit cheylesmore.com and get in touch with an expert account. The reason why you should reach out to Cheylesmore Accountants is that they have the most experienced and skilled staff when it comes to accurate accounting.