I hate to be Scrooge this Christmas as I believe Christmas is all about giving so here is my gift to you….
With a large number of Britons working from home for some or all of the time, many will be facing higher energy costs as the weather grows colder.
Energy regulator Ofgem recently announced that the energy price cap will increase to £3,549 per year for dual fuel for an average household from 1 October 2022.
However, even with the new price cap, an 8-hour working day is estimated to cost more than £30 a day, including heating and electricity as well as other services like broadband connections.
If you fit in this bracket, you are urged to claim back costs. As a first port of call, employees should discuss the cost of working from home with employers to see whether they would make payments for additional costs incurred.
Workers may also be able to claim a flat rate tax relief of £6 a week for the cost of energy and remote working costs. Workers are not required to keep receipts for this approach but it only applies to those who are contractually required to work from home and their employer does not have an office.
In addition, you can claim tax relief on the costs of remote working, which requires you to keep receipts for utility bills such as gas, electricity and internet and identify how much was used while working at home. While this approach is more time-intensive, it could lead to larger amounts being paid out.
The recent drop in temperatures has highlighted to many that there are lots of hidden costs related to working from home. While it may seem that workers are saving in lieu of not having to commute, they may be paying more than they expect when working from home in the form of gas, heating, electricity, broadband and so on.
The issue is that there still is a huge knowledge gap when it comes to taxes. It’s more important than ever to stay well-informed in relation to taxes and what workers can claim back when it comes to their line of work.
Get reclaiming………………
I am an Independent Financial and Mortgage Adviser and have worked in Financial Services for over 12 years. During my career I gained experience in assisting both individual and corporate clients.…
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