Working from home tax relief

Jeremy535897

unholyangel said:

Jeremy535897 said:

Earnings are taken into account for calculating UC, and so are expenses. If you had not claimed WFH, your UC would have been reduced by more. See: https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/what-is-income-for-uc

I think you've misread the page. Or made a typo in your post. 

It is also possible for claimants to deduct any allowable work expenses they incur, which are not reimbursed by their employer, from their earned income. This will reduce their income for UC purposes. This was confirmed via a parliamentary question in 2018. However, the process for doing this is not clear. We advise that claimants put a note in their journal for their work coach and if DWP refuse to make the deduction then a mandatory reconsideration should be requested (for each assessment period affected) as the first stage of an appeal.

It does also say:

Repayments of income tax and national insurance contributions received by a person from HMRC in respect of a tax year in which the person was in paid work are also treated as employed earnings (unless they are already accounted for as self-employed earnings)

It sounds like the tax refund should increase their income for UC but the dwp should allow a deduction for work expenses which should cancel it out. If the tax refund wasn't for work expenses then it would reduce their award. 

You are right. I was thinking about how to measure the quantum of income less expenses, rather than the effect of the tax refund.

Piggy100

https://forums.moneysavingexpert.com/post/quote/6253501/Comment_78190436

Similar to another post I work full time but complete self assessment for a rental property.  I spent quite a lot of money on the property this year so don’t expect to pay tax on a smal income for next two years.  

I’m been doing my job from home for over a year so how can I benefit from wfh tax relief?

MattMattMattUK

Piggy100 said:

https://forums.moneysavingexpert.com/post/quote/6253501/Comment_78190436

Similar to another post I work full time but complete self assessment for a rental property.  I spent quite a lot of money on the property this year so don’t expect to pay tax on a smal income for next two years.  

I’m been doing my job from home for over a year so how can I benefit from wfh tax relief?

The only way I can think of would be to earn more, so that you reach the threshold to pay tax, then you can be relieved from paying tax. If you do not pay tax then it logically follows that you are unable to obtain tax relief. 

sheramber

Piggy100 said:

https://forums.moneysavingexpert.com/post/quote/6253501/Comment_78190436

Similar to another post I work full time but complete self assessment for a rental property.  I spent quite a lot of money on the property this year so don’t expect to pay tax on a smal income for next two years.  

I’m been doing my job from home for over a year so how can I benefit from wfh tax relief?

it is tax relief so that you pay less tax.  If you donlt pay tax already you cannot pay less tax.

Dazed_and_C0nfused

Piggy100 said:

https://forums.moneysavingexpert.com/post/quote/6253501/Comment_78190436

Similar to another post I work full time but complete self assessment for a rental property.  I spent quite a lot of money on the property this year so don’t expect to pay tax on a smal income for next two years.  

I’m been doing my job from home for over a year so how can I benefit from wfh tax relief?

If you are married it may be that the WFH expenses make an application for Marriage Allowance beneficial/more beneficial (your spouse would be the one saving tax).

But you would need to check your tax position carefully before applying otherwise you could end up with a bigger bill than the refund your spouse would receive.