We’ve all had to change our lifestyles over the past year. But did you know that for some of these changes, you might be able to claim back some of the costs? For a better idea of what you might be eligible for, here are 3 government payout entitlements you can pursue.
1. Working from home tax relief
If you’ve had to switch from a work to a home office since the start of the pandemic, you may be entitled to working from home tax relief. This covers additional costs you might have racked up while spending more time at home, such as increases in electricity and water bills, having to improve your broadband connectivity or changing your contents insurance.
It won’t cover costs if you choose to work from home, or any costs that would be the same if you were in your usual place of work, such as your mortgage.
If you’re eligible, you can claim either:
- £6 a week from 6th April 2020 – but you do not need provide evidence of your extra costs;
- The exact amount of extra costs you’ve built up above the weekly amount. Please note that you will need to provide evidence, such as receipts, bills or contracts.
Think you’re eligible? Claim for working from home tax relief.
2. Job expenses tax relief
As well as household costs, you might have had to fork out for new equipment to do your job effectively at home or differently to how you used to. For instance, if you’ve purchased a new computer solely for work use, you may be able to claim back the cost.
You can claim tax relief on equipment expenses if:
- You need it to do your job;
- You use the equipment just for work and there is no significant private use (you’ll need to be using your equipment in accordance with your organisation’s policy).
Need to claim for equipment? Check if you’re eligible for job expenses tax relief.
3. Self-employment income support scheme
If you’re self-employed or a member of a partnership, you could be entitled to a government grant. But only if your business has or is experiencing an impact as a result of coronavirus (COVID-19). By contrast, perhaps you weren’t eligible for the first two grants based on the information in your self-assessment tax return. Unfortunately you won’t be eligible for this one. However, if you were, you can claim for the period between 1st November 2020 and 29th January 2021.
This third grant is for a new or continuing impact of coronavirus leading to a significant reduction in your profits. In short, it’s worth 80% of your average monthly trading profits. Moreover, it’ll be paid out in one instalment covering three months of profits and is capped at £7,500. The cut-off date for claims is 29th January 2021.
For more information on how to claim, check the self-employment income support scheme page.
From your heating bills to new equipment, there are a few costs from over the past year that you may be able to claim back.