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The HMRC is’ inundated ‘with claims that use a little-known tax relief for home office workers’ equipment: how to make a claim and what is it?
- Millions who now work from home have the right to claim certain items
- This could include study chairs, desks and stationery, paper and printer ink.
- These claims are made through P87 forms that are delivered to the tax collector
- Here we show you how to help people affected by Covid-19
HMRC has been ‘inundated’ with claims from employees working from home during the shutdown and taking advantage of a little-known tax cut for office desks, chairs and printer ink.
Millions of people who now work remotely due to the coronavirus pandemic have the right to claim a tax relief for items they say are “wholly, exclusively, and necessarily” to do their job successfully.
This could include study chairs, desks and stationery, paper and printer ink.
These claims, made through P87 forms submitted to the tax collector, were not commonly used before the pandemic and were only accessible if an employer agreed that an employee should work from home and not just because they wanted to.
HMRC has been ‘inundated’ with claims from employees working from home during the lockdown that they are taking advantage of a little-known tax cut for office desks, chairs and printer ink
But now the shutdown has opened the floodgates to claims, which could be worth hundreds of pounds of tax relief to be paid to employees.
Nimesh Shah, a partner at tax firm Blick Rothenberg, told The Times: “ Because large numbers of people have been forced to work from home during the shutdown, HMRC will be inundated with claims for work expenses to home.
Online furniture store Wayfair has seen a 200 percent rise in searches for UK home office supplies in the past month, with desks, bookshelves and office chairs having become best-selling items. .
Online furniture store Wayfair has seen a 200 percent rise in searches for UK home office supplies in the past month, with desks, bookshelves and office chairs having become best-selling items. .
John Lewis said home office sales through his website had increased 123% since the week beginning March 16.
The amount of tax relief for office equipment will be the same as the level of the income tax rate they earn on the job.
For example, a base rate taxpayer claiming £ 1,000 of allowable expenses will receive £ 200, which is 20 percent of what he spends on equipment.
However, experts have cautioned that employers should be careful with people who buy items for personal use.
HMRC says the items must be for work assignments, which is difficult to prove.
Therefore, HMRC will not accept purchases such as clothing, broadband, or a laptop as they are used in daily life and at work.
HMRC told The Times that it did not have precise figures on the number of P87 claims it had received, but agreed that the volume had increased significantly.
“HMRC is at the forefront of the government’s response to the pandemic and is working hard to implement the plans announced by the Chancellor to provide security and peace of mind for millions of workers and companies across the country,” said a spokesman.
“We would ask customers for patience when making their applications.”
