Working from home

apski

Hi, thanks in advance for any answers.

I work from home as a condition of my employment. I recently wrote to HMRC asking for the flat rate £3/week (for last tax year).

They've now adjusted my tax code for next year too but it seems they are only giving me tax relief on £200 income (presumably 50x£4/week (the new flat rate)). I say seems as they've added £200 on to my personal allowance, so by my (limited) understanding, that means I'll only actually be 20% of that £200 better off...

Is this £3 or £4/week figure that's used is a net amount you receive or the amount you get tax relief (ie. 20% of £3 or £4/week) on?

Thanks!
Apski

CLAPTON

tax relief only so 20% of 200

this is because business expenses can be offset against income and then the tax is calculated at whatever rate you pay.

apski

Thanks CLAPTON.

Have to say that's a lot less worth getting excited about! 80p a week for gas/elec for standard tax payer....

CLAPTON

apski wrote: »

Thanks CLAPTON.

Have to say that's a lot less worth getting excited about! 80p a week for gas/elec for standard tax payer....

maybe

But really it is for your employer to pay the costs of employing you.

And enjoy the 80p and don't spend it all at once.