Could you claim back tax relief?
Has your home been your office since lockdown started back in March? A lot of us have suddenly gone from a full-time office role to a full-time working from home position. While you may have made some savings through lack of travel expenses and work lunches, it could well have cost you in other expenses, such as equipment, furniture and maybe even a more capable internet connection.
The Government has always allowed people to claim back tax relief on additional working from home costs. But, on 6th April 2020, the amount you could claim tax relief on rose from £4 per week to £6. This amount is set to help cover the costs of your household bills affected by using your home as your office, such as heating, broadband and electricity bills.
So, if you’ve been working from home since lockdown started on 23rd March, you could claim about £170 (27 weeks at £6 and two weeks at £4) back as tax relief. Working out to be about £34 after tax for those in the lower tax bracket, and £68 for the higher rate.
Check if you can claim for tax relief on the Government’s website: https://www.gov.uk/tax-relief-for-employees
How much extra does it cost to work from home?
Pay As You Go energy provider Utilita has researched just how much it costs to power a kettle for your daily cuppa, as well as microwaving your lunch while you’re working from home. It sets the average person back £1.26 a week, totalling £5.04 per person, per month.
The Telegraph has estimated that working from home could potentially add an additional £52 per month to your energy bill. Totalling £624 annually for full-time workers.
The flat rate £6 a month tax relief doesn’t cover all the potential costs incurred when working from home, but it can certainly help! You may be able to claim more, but you will need evidence of the bills before you start.
The best kit for working from home
Yello can provide a powerful, cost-effective, quick-setup solution to take home with you, so your home office is as good as your actual office. Also, using business solutions, you could reduce your home costs as they can still be paid for by your company.
What kit could help you:
Hosted phone systems – using Voice over Internet Protocol for all telephone systems. You can plug and play with your handsets through your desktop. Meaning you can take home your normal office handset and use it while working from home, keeping the costs off your personal phone.
Mobile contracts – Yello has partnered with O2 and Vodafone to provide business mobile contracts with 99% coverage across the UK. And, with the business sharer plan, your company can choose how much your monthly call and data allowance is. Taking your business phone home with you could save you a considerable amount on your personal mobile contract, especially if you don’t have unlimited calls.
Broadband and fibre – we can install business-grade broadband directly into your home. So you can have fast, reliable, and secure broadband without having to pay to upgrade and secure your own home broadband solution. Keeping your home costs down, while providing you with a better service than you’d get from a home broadband provider.
What to do next?
Speak to our team of telecoms experts today. Discover how you and your business could benefit from adaptable and scalable broadband and phone systems.
We’re happy to chat about what business solutions we offer and what is best suited to your company. We’ll give you an instant quote over the phone and our team of engineers can discuss any installation queries you may have.
Contact us today on +44 (0) 116 224 4000 or email us at firstname.lastname@example.org
Yello is not a tax or finance expert and independent research should be undertaken when considering any financial decision.