Working from home? Scots may be eligible to claim tax relief

HM Revenue and Customs (HMRC) is accepting tax relief claims for working from home due to coronavirus during 2021/22. More than 550,000 employed workers have already claimed and are benefitting from the tax relief.

If employed workers were told to work at home by their employer because of coronavirus and, as a result, their household costs have increased, they are eligible to claim the working from home tax relief. It is quick and easy to claim via HMRC’s online portal.

HMRC received more than three million claims across the UK for the tax relief for the 2020/21 tax year.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Half a million people have already reduced their Income Tax this year by up to £125, by claiming tax relief on their working from home expenses.

“We want everyone who’s eligible to benefit, so we’ve made it quick and easy to do online. Check if you’re eligible and apply at GOV.UK by searching ‘working from home tax relief’.

“HMRC is continuing to help and support people affected by the pandemic.”

From 6 April 2020, the amount employers have been able to pay tax-free without employees having to provide evidence of an increased bill is up to £6 a week.

Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

Eligible customers can claim tax relief based on the rate at which they pay tax. For example, if an employed worker in Scotland pays the 21% intermediate rate of tax and claims tax relief on £6 a week, they would receive £1.26 a week in tax relief (21% of £6 a week) towards the cost of their household bills.

Higher rate taxpayers would therefore receive £2.46 a week (41% of £6 a week). Over the course of the year, this could mean customers can reduce the tax they pay by £65.52 or £127.92 respectively.

Taxpayers can check if they are eligible via GOV.UK.

To claim for tax relief for working from home, employees can apply directly via GOV.UK for free. Once their application has been approved, the online portal will adjust their tax code for the 2021/22 tax year. They will receive the tax relief directly through their salary until March 2022.

If employees were required to work from home last year but did not claim for the tax relief, they have not missed out; HMRC will accept backdated claims for up to four years. They will receive a lump sum payment for any successful backdated claims.

Using an agent to apply for the working from home tax relief, and other similar schemes, could result in customers paying unnecessary fees or commission.

Using the GOV.UK service is free, and customers will receive 100% of the tax relief that is due. Agents will not be able to use the online portal to apply for the relief on a customer’s behalf.

British Psychological Society launches homeworking guidance

In response to the huge change in working practices the British Psychological Society (BPS) has published guidance on how to create healthy sustainable homeworking conditions for both workers and their employers.

Working from home has become widespread since restrictions to control Covid-19 were introduced in the UK. This has meant a major shift for individuals and organisations.

The guidelines, ‘Working from home: Healthy sustainable working during the Covid-19 pandemic and beyond’, outline the practical steps and considerations that can make homeworking a success and has advice for both workers and their employers.

Drawing on psychological expertise the guidelines advise workers to set appropriate boundaries between their work and personal life and encourage employers to recognise and address risks to physical and mental wellbeing involved in remote working. It also recommends that employers adopt a flexible approach because each individual’s situation will be different and may change rapidly without warning.

Professor Gail Kinman, joint author and member of the BPS Covid-19 Working Differently Group, said: “Working from home can work well, but under current conditions some people have struggled to adjust to new environments and working patterns.”

“Managing employees is different and what works in a traditional workplace may not apply when working remotely. It’s important to get the balance right when making arrangements that aim to meet everyone’s needs. Effective two-way communication is essential at every stage.”

“We hope our new guidance will help employers and employees work together to ensure successful and healthy homeworking.”

Working from home

 

Home Working: TUC advice

The TUC has published new advice on home working. The move follows the prime minister’s call this week for people to work at home during the coronavirus outbreak if they can …

More than 1.7 million people already work from home on a regular basis in the UK, but millions of people are likely to be home working for the first time this week, the TUC says.

The union body says it is vital that staff have access to safe working conditions in their own home. It says workers should also take regular breaks and follow their usual working hours if possible. The TUC adds that it is important to keep in contact with colleagues – by email, Skype, phone and chat for example – to avoid the mental health effects of isolation.

The TUC is calling for protection of those unable to take the work from home option, especially frontline workers in public services.

TUC general secretary Frances O’Grady said: “It’s essential for those people who can work from home to do so during the coronavirus outbreak. It’s important to have a safe place to work and to keep in regular contact with colleagues. 

“But not everyone has the option of working from home, especially those running our vital public services at this difficult time.”

She added: “The rest of us working from home, not making unnecessary journeys and avoiding social contact will help keep them safe. And no one should be left out of pocket because they can’t get into their workplace or work from home.”

Costs that should be covered by the employer could include paying for necessary work equipment or improved wi-fi provision.

Working from home with kids: Coping with the pressure

As more of us turn to self-isolation, the burden of work and home schooling is becoming a scary reality. We explore some coping strategies to help home workers cope with what might be the most challenging period of life so far …

In Norway parents have been told to home school their kids for 2 months. They have a set workload to teach and submissions must be submitted each day at 2pm. It might not come to that, but how do you even begin to cope with work pressure and home-schooling deadlines like that?

“Our kids were off school yesterday both with dry coughs, therefore we are in self-isolation for the near future from today. The reality of home schooling whilst trying to keep on working is very daunting indeed”, explained Jonathan Ratcliffe of Offices.co.uk

Working from home is tough. Home schooling is very tough. So, if you must combine the two for a long period of time, how are you going to cope?

You are going to have to plan well, get organised and work to a strict timetable if you want to get everything done. Equally, you’ll need to have a proper split between work, school, fun and rest.

“The first thing you need to do is lower your expectations of what you are going to achieve, both with work and schooling. If you try to do too much the experience is going to be highly stressful”, Ratcliffe adds.

  • Lower your expectations of what you will achieve with work
  • Simplify your day into a set routine
  • Don’t try and achieve too much
  • Pause and try and appreciate moments with your kids

Here are 10 tips on how to survive:

START EARLY AT THE SAME TIME EACH DAY: Routine is important for good sleep and mental health, for both you and your kids. School starts at a set time, so make sure you are ready and stick to the timetable.

GET DRESSED PROPERLY LIKE TEACHER AND STUDENT: Getting showered and dressed is important to divide sleep and school.

CREATE SPACES FOR DIFFERENT ACTVITIES: You might set up a teaching room (kitchen), quiet room (spare bedroom) and a play area (living room)

STRUCTURE YOUR DAY LIKE A SCHOOL DAY: Teaching time, activity time, play time and lunch time – just like their normal school routine

MAKE A PLAN WITH YOUR KIDS: At the start of the day ask them what they want to do (within reason) so they feel involved

TURN OFF YOUR PHONE: How are your kids meant to feel involved if you are checking emails?

SET ASIDE BREAKS FOR TV, IPAD AND EXERCISE: Use these times to schedule work emails or calls

TAKE EXERCISE: Depending on where you live, if you have a garden or not – try and get some fresh air, this also allows you some headspace

FINISH AT A SET TIME, BEDTIME AT A SET TIME: By getting a routine drilled in early on, you can try and get the kids to sleep at a sensible time, thereby giving yourself some space to work if you need to

DON’T BE TEMPTED TO HIT THE WINE: If you can, evening time will be the only real time you can realistically work. If you drink your concentration will be poor, sleep poor and you’ll wake in a grumpy mood. Try and keep drinking to a minimum.

“We are heading into unchartered territory here and no one knows what life will look like at the end. It’s important to realise that time with your kids is a gift, don’t try and do too much – hopefully we can all stay relatively positive through this difficult time”, concludes Ratcliffe.