Tax relief for home worker

monstermuncher

It seems a couple got refunded £3pw when it was backdated (and some got money towards computer/gas/electricity) but when it's gone forward, they've just increased the allowance before tax should be applied.

It does appear incredibly confusing. I hate tax.

As for the employer contributing? I've got more chance of HMRC telling me that I'm so nice I never have to pay a penny in tax again.

Mikeyorks

monstermuncher wrote: »

The only one I'm sure of, got a cheque for just under £300 and her tax code adjusted so she can earn more before tax. That's only £156 a year though, so this whole thing is me jumping through hoops for effectively £31 a year. How on Earth did she get £300? I wonder if they made a mistake with hers?

The tax relief is at your marginal rate. So if she was on 40% that does push it above £60 (times 5 years?).

If you claim the relief it is given in your Coding for current years. But calculated as a refund (normally) for previous years. It's not that complex!

monstermuncher

She's not on 60%, only works part time and has only worked there for 2 years.

It's quite complicated!

Mikeyorks

In which case the £300 must have been mainly a repayment of tax overpaid because the code was incorrect, or similat?

monstermuncher

I have no idea, I'll just have to wait and see what they say if they ever get back to me!

Living_proof

Thanks everyone for the links and advice re. marginal rate. I think over the last six years I would be entitled to £832 relief at 20% (was it always 20% since 2006-7?) which is £166.40 or thereabouts. I am trying to work out whether this is worth the candle!