Martin Lewis: Working from home due to coronavirus, even for a day? Claim TWO years' worth of tax re

Kendo2424

Well, that didn't come out the way I was expecting! New tax code received today for 2020/2021 which means I'll be paying more tax, not less, after submitting the claim for relief on job expenses of £312. 
New tax code 1102LX replaces old code 1419L. Tax code notice states "Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £322.00. So that you pay the right tax for the year, we have included an adjustment to reduce your tax-free allowance by £1791.00 to collect the £322.00 tax in equal instalments from now on by increasing the tax deducted from your wage, salary or pension so that the £322.00 is paid by 5 April 2021."
£312 is recorded on the new tax code notice as Job Expenses, so I should get the tax relief on that.
I can only assume that by submitting the claim I've alerted HMRC to re-check my status & they have now assessed that I was paying too little tax (regardless of the claim for relief on £312). I'm fine with this BTW, if it is the case, just warning to others that you may not get the result you are hoping for!
I see that the 'X' at the end of my tax code means that at the end of the tax year HMRC will assess my actual income for April 2020 to 5 April 2021 and contact me if I owe any (more) tax or if they owe me a refund. 
Hopefully I've understood all that right, happy to be corrected. Cheers!

Dazed_and_C0nfused

Kendo2424 said:

Well, that didn't come out the way I was expecting! New tax code received today for 2020/2021 which means I'll be paying more tax, not less, after submitting the claim for relief on job expenses of £312. 
New tax code 1102LX replaces old code 1419L. Tax code notice states "Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £322.00. So that you pay the right tax for the year, we have included an adjustment to reduce your tax-free allowance by £1791.00 to collect the £322.00 tax in equal instalments from now on by increasing the tax deducted from your wage, salary or pension so that the £322.00 is paid by 5 April 2021."
£312 is recorded on the new tax code notice as Job Expenses, so I should get the tax relief on that.
I can only assume that by submitting the claim I've alerted HMRC to re-check my status & they have now assessed that I was paying too little tax (regardless of the claim for relief on £312). I'm fine with this BTW, if it is the case, just warning to others that you may not get the result you are hoping for!
I see that the 'X' at the end of my tax code means that at the end of the tax year HMRC will assess my actual income for April 2020 to 5 April 2021 and contact me if I owe any (more) tax or if they owe me a refund. 
Hopefully I've understood all that right, happy to be corrected. Cheers!

Are you not curious what was removed from your tax code to drop it from 1419L?

Kendo2424

 "Are you not curious what was removed from your tax code to drop it from 1419L?"
Hmm, yes I am, but I can't find the old tax code notice.... 

Dazed_and_C0nfused

Kendo2424 said:

 "Are you not curious what was removed from your tax code to drop it from 1419L?"
Hmm, yes I am, but I can't find the old tax code notice.... 

Have you tried your Personal Tax Account on gov.uk to see if that shows the before and after picture?

BigBlueSky

Just helping a friend with this.  It turns out they started working from home several years before Coronavirus - Usually once or twice a week.  Can they submit just the one claim from 2016 onwards (through the micro portal), or do they need to submit a separate one for before Coronavirus and each tax year ?

ajarv19

An interesting question from one of my employees - anyone have any ideas?

"Is there any potential negative if employees do claim for tax relief on use of their homes? I seem to remember a caveat from among time ago relating to people who work from home. Something about complications should you subsequently sell the home?"

Thanks
Andrew

doodlez1612

Martin’s blog mentions that you can’t claim for the whole year pre 23 March (ie pre-lockdown) because you have to be ‘required’ to work from home but that you can for 2020/21 tax year (ie from 6 April). What about between 23 March and 5 April? I worked from home for those 7 days before being furloughed and have put in a claim for those days already but am wondering whether I could actually reclaim the whole 2019/2020 year??

Edit: Just reread his article and spotted the very first sentence saying “From this tax year...”. I obviously leapt ahead too quickly last time. 

So ignore me. 🙄

sfee

Hi, I just filled out the form and it said my tax code has now changed. Does anyone know come April to I have to change my tax code back again or will it automatically do it?

Thanks

wackojackouk

Evening all,

Martins blog mentions that folk who do a self-assessment form can't use the microservice (I only have to do one because of a older higher income child benefit charge that spans into to the tax year).

The blog mentions "Instead, here you can claim the allowance as part of the self-assessment form (it's included in section 20 on the full return and section 2.5 on the short form). "

I'm doing the online self assessment (and also checked the PDF) but can't find the section he's talking about. 

Any advice (screenshot would be ace).

Thanks

Dazed_and_C0nfused

wackojackouk said:

Evening all,

Martins blog mentions that folk who do a self-assessment form can't use the microservice (I only have to do one because of a older higher income child benefit charge that spans into to the tax year).

The blog mentions "Instead, here you can claim the allowance as part of the self-assessment form (it's included in section 20 on the full return and section 2.5 on the short form). "

I'm doing the online self assessment (and also checked the PDF) but can't find the section he's talking about. 

Any advice (screenshot would be ace).

Thanks

It is at the end of the employment page.  You need to tailor your return correctly to get the expenses boxes to appear.