The shift to hybrid and remote working that was accelerated by the pandemic did, for a time, bring about financial relief for those who had to adapt to the new situation.
While the pandemic is a somewhat of a distant memory now, the culture of work has been changed forever by the discovery of how good hybrid and remote working can be for many people.
Something else fading into memory is the financial relief that existed to support that initial transition.
It is important to review what the current state of home-working relief is and how you can help clients navigate it.
Who can claim home-working relief?
Depending on whether working from home is a choice by the employer or the employee, different people will be entitled to relief.
If an employee chooses to work from home, but there is an option for them to work entirely from the office, then no home-working relief can be claimed.
This is because the Government assumes that the person making the choice has given it some thought and is prepared to shoulder the costs associated with working from home.
The safety net of returning to the office means that no relief can be claimed, as working from the office is a good way to cut back on your own energy bills, even if it does mean having to queue for the microwave at lunchtime.
Even if a worker stays away from the office because it is full, the fact that the office space technically exists means they cannot claim relief.
However, if there is a contractual obligation to work remotely, then relief can be claimed.
This will most commonly be the case for those employed by an international company who do not require relocation, but it can also include a London-based company hiring someone in Manchester, for instance.
Also included are people who work for businesses that do not have offices, as there would be no option to work from an office if it does not actually exist.
What does home-working relief help with?
Home-working relief covers work-related expenses like business phone calls and the electricity and gas used for working.
However, broadband and rent cannot be included in the relief as these expenses will be the same whether someone works from an office, from home, or from the surface of Mars.
A flat £6 a week can be claimed without any evidence, but to claim a more accurate figure it will be necessary to prove that the expenses were incurred.
How can I help clients with home-working relief?
The main area where they will need help is determining eligibility.
It will be worth reviewing employee contracts to determine whether this is something they should even explore.
If they are eligible, then it will be worth highlighting the need to gather and collate the relevant evidence if they want more than just £6 a week.
As receipts and bills can be easily lost, suggesting a robust digital system to compile and collate the information for HM Revenue and Customs (HMRC) to approve is a good idea.
Glasscubes specialises in taking the stress out of information retrieval with its ability to automate reminders for chasing necessary documents so that deadlines do not get missed.
As HMRC work to clamp down on people mistakenly trying to use the old measure of home-working relief, where more people were eligible, proving the validity of a claim is essential.
You and your client can relax knowing that Glasscubes has provided the perfect centralised solution to compiling information for a claim that will remain HMRC compliant.
Help your client make HMRC compliant claims. Book a demo today.
