Tax Credits and WfH Tax Relief 29 October 2020 at 2:19PM in Benefits & tax credits 6 replies 111 views

sharonfrancis

apologies if this has been asked before, but I couldn't find anything, 

I have been working from home since March but also receive tax credits.  If I put a tax relief claim in will it affect my tax credits? 

also I did a bout of wfh last year for several months.  Could I request a backdated payment? 

thanks in advance

KatrinaWaves

I doubt it. Despite the name tax credits is a benefit rather than anything to do with tax really. You claiming a tax relief shouldn’t affect it.

Im not sure about last year. The relief is so small per week tbh I wouldn’t go through the hassle of backdating if possible, it’s like £1/£1.50 a week or something. Depending on how long you did it is how worth it it would be 

calcotti

sharonfrancis said:

I have been working from home since March but also receive tax credits.  If I put a tax relief claim in will it affect my tax credits? 

also I did a bout of wfh last year for several months.  Could I request a backdated payment? 

Final date for tax returns for 2019-20 are not due yet so if you want to make a claim in respect of that year you are still able to do so. The rate was £4/week so the tax relief (for a standard rate tax payer) is only 80p/week so even if you claim for 16 weeks it's only £12.80.

Tax Credits are calculated on gross income so tax relief makes no difference to the Tax Credit calculation.

Alice_Holt

No, it just changes your tax code, so reduces the tax you pay.  
If you apply through this:
 https://www.gov.uk/tax-relief-for-employees/working-at-home
there is a screen to input your start date for WFH, if in the last tax year this will should enable HMRC to adjust your tax code for that year without you needing to take any further action. 

sharonfrancis

fab, thanks everyone. 

will get my application in now.  :-)

Dazed_and_C0nfused

calcotti said:

sharonfrancis said:

I have been working from home since March but also receive tax credits.  If I put a tax relief claim in will it affect my tax credits? 

also I did a bout of wfh last year for several months.  Could I request a backdated payment? 

Final date for tax returns for 2019-20 are not due yet so if you want to make a claim in respect of that year you are still able to do so. The rate was £4/week so the tax relief (for a standard rate tax payer) is only 80p/week so even if you claim for 16 weeks it's only £12.80.

Tax Credits are calculated on gross income so tax relief makes no difference to the Tax Credit calculation.

That isn't how tax credits are calculated.  According to the renewal notes eligible employment expenses can be included and therefore although small would have the potential to increase a tax credits award.

Unless completing a Self Assessment return for some other reason you wouldn't need to file one to claim expenses of £64.

The time limit, outside of Self Assessment, for making a claim for income tax relief for the 2019:20 tax year is 5 April 2024.

calcotti

Dazed_and_C0nfused said:

calcotti said:

sharonfrancis said:

I have been working from home since March but also receive tax credits.  If I put a tax relief claim in will it affect my tax credits? 

also I did a bout of wfh last year for several months.  Could I request a backdated payment? 

Final date for tax returns for 2019-20 are not due yet so if you want to make a claim in respect of that year you are still able to do so. The rate was £4/week so the tax relief (for a standard rate tax payer) is only 80p/week so even if you claim for 16 weeks it's only £12.80.

Tax Credits are calculated on gross income so tax relief makes no difference to the Tax Credit calculation.

That isn't how tax credits are calculated.  According to the renewal notes eligible employment expenses can be included and therefore although small would have the potential to increase a tax credits award.

Unless completing a Self Assessment return for some other reason you wouldn't need to file one to claim expenses of £64.

The time limit, outside of Self Assessment, for making a claim for income tax relief for the 2019:20 tax year is 5 April 2024.

I meant gross before tax which means that a change in the amount of tax deducted wouldn't matter. I hadn't thought of the possibility of it being an allowable expense on Tax Credits too. Thanks for correcting me.