Employment allowances and tax reliefs

Employment allowances and tax reliefs

As we come close to the end of the 2020/2021 personal tax year here are a few things to think about before the tax year ends:

Working from home has become the norm for many through 2020 and 2021, but it can have cost consequences for us and our households.  With COVID, everyone has become more aware of allowances like the “working from home” allowance, especially thanks for people like Martin Lewis shouting about them.  So, what could you get as an employee………

Working from home allowance

With working from home there can be additional household costs, for example communications and utilities (although I have spent the year telling my husband to just put a jumper on rather than the heating!). To allow for these additional costs you may be able to claim tax relief at a fixed rate or against specific costs (if you keep records detailing this). Some employers may pay this allowance to their employees, but if not, it is a relief that can be considered when preparing your tax return. Please flag this up with us if you think it might be relevant to you.

Expenses for home equipment

With many having to purchase equipment to enable working from home, some employers have reimbursed these amounts; however, some haven’t. Where your employer has not reimbursed these expenses then it may be possible to clam tax relief on the equipment purchased. So please keep the receipts and we can review these when preparing your tax return.

Annual eye test

From speaking to many of you, one thing that I have heard more and more in the last year is about tired eyes. Did you know that if you are a user of Display Screen Equipment (DSE) then you can request an eye test and your employer must provide this and also pay for the test. Should you need glasses relating to DSE work and depending on the prescription, then the employer might pay for the glasses too. I collect my new glasses this weekend, so you may well see them on our next Zoom call!

Anything else?

There may be other tax reliefs available if you have to pay for any items relating to your employment. Please flag these up with us and we can consider them when preparing your return.

As always, if you need any support then please get in touch.  You can always book into my calendar so we can catch up; otherwise, just give me a call or drop me an email.