Work from Home - no tax relief 2024/25?

lisyloo

SuzeQStan said:

Nope sorry still not understanding what
you are inferring.

Can you confirm (it's not clear to me) whether you have or haven't been issued with a new contract of employment.
If this happened I would have expected it to be quite hotly discussed amongst employees so probably not something that went unnoticed and it's the sort of things your employer may even have done snail mail.
It would be helpful if you could clarify on that point as I can't see it clearly stated.

SuzeQStan

As stated previously Im not aware that we have been issued a new contract.  Nothing has been mentioned. I didn’t know that I needed one.

really just wanted to know if anyone else on here in similar position has received an email from HMRC removing the WFM tax relief for 2024/25

SuzeQStan

borris78 said:

I had been claiming WFH tax relief but the rules have now changed so I'm no longer eligible for it. If you choose to WFH rather than attend the office then you can no longer claim it. If your employer designates you as a home worker or has no office then you can claim it.

Like yourself, I receive a coding notice change from HMRC last year and they said I've underpaid £72 tax. There was no explanation but I'm guessing this is due to the WFH allowance. That said, I do need to call them about this to check it's still correct since my self-assessment tax adjustments are paid in arrears and I think this was still a year when I was eligible. It is very difficult calling HMRC to check these things, and they should explain things more easily either in the letters or on their system. 

Thanks for this message - I’m aware of the requirements for WFM tax relief.  I wish I had an office to go to! Wouldn’t have to heat my home during the day otherwise lol.

my email from HMRC didn’t say I owed any money back to them - just that my tax code was changing for the upcoming year 2024/25.

when I spoke to the HMRC rep yday I was advised that I would need to wait till 6th April to reapply for the WFH tax relief and that they ‘guessed’ there could be changes in the WFH tax relief that are as yet unannounced for the coming tax year.

on a side note I rang HMRC around 2pm yesterday and got through in less than 2 minutes. Read an article in DM about how they are closing their phone lines over the summer from 8th of April. Until September. Mind boggles.

lisyloo

I don't think they have to issue a new contract but it's normal.

HMRC have just backtracked on that decision to close the phone lines.

sheramber

As you employer changed your working condition you( as in the workforce) could have raised the issue of some incentive as your employer contributing to your costs. 

But , of  course, you could be benefitting from less travel costs and less cost of buying lunches. 

If you had a contract stating your workplace was your home then that is proof to HMRC that you are required to work from home. 

As there is some uncertainty as to whether the fixed allowance will continue you will need to wait until the new tax year to find out the position for 24/25 and , if anything, you need to do to be able to make any claim. 

Grumpy_chap

SuzeQStan said:

advisor said to wait till April 6th as there may be an announcement about WFH tax relief (but they didn’t know what that might be) 

sheramber said:

As there is some uncertainty as to whether the fixed allowance will continue you will need to wait until the new tax year to find out the position for 24/25 and , if anything, you need to do to be able to make any claim. 

Unless there was a reference in the Budget which I missed, why is it still necessary to wait until April 6th?  Wouldn't any change have to be announced in a "fiscal event" by the Government?  No more of those this tax year.

SuzeQStan

Grumpy_chap said:

SuzeQStan said:

advisor said to wait till April 6th as there may be an announcement about WFH tax relief (but they didn’t know what that might be) 

sheramber said:

As there is some uncertainty as to whether the fixed allowance will continue you will need to wait until the new tax year to find out the position for 24/25 and , if anything, you need to do to be able to make any claim. 

Unless there was a reference in the Budget which I missed, why is it still necessary to wait until April 6th?  Wouldn't any change have to be announced in a "fiscal event" by the Government?  No more of those this tax year.

Thought struck me as well thanks GC

SuzeQStan

sheramber said:

As you employer changed your working condition you( as in the workforce) could have raised the issue of some incentive as your employer contributing to your costs. 

But , of  course, you could be benefitting from less travel costs and less cost of buying lunches. 

If you had a contract stating your workplace was your home then that is proof to HMRC that you are required to work from home. 

As there is some uncertainty as to whether the fixed allowance will continue you will need to wait until the new tax year to find out the position for 24/25 and , if anything, you need to do to be able to make any claim. 

That makes sense but we are a small company with no incentives on the table. If I need to have a contract which states that will cross that bridge.  

Have been doing some further reading which suggests anyone claiming WFH tax relief may have to fill out a return now. Not many theories out there though at this point that I can find

sheramber

https://www.tax.service.gov.uk/claim-tax-relief-expenses/inform-customer-claim-now-in-weeks

Claims on or after 6 April 2023 are now calculated in weeks

If you work at home one or more days in a week, you can claim for that whole week.

If you are not sure how many weeks you will be eligible to claim for, we advise you to wait until you know because any further changes cannot be made using this service and may take longer to process.

HMRC have reverted to the rules before they were relaxed during Covid. 

You can now only claim for the weeks you actually work. So holiday weeks will not be eligible.

It seems the allowance is no longer automatically for 52 weeks so uindividual claims will be necessary stating how many weeks you have worked.

SuzeQStan

Ah that makes a lot of sense actually as my email said I’d be £10 worse off a year so they must be taking annual leave into account of the WFH tax relief. 

Nice one @sheramber