The Chartered Institute of Payroll Professionals
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HMRC has revealed that, since April, nearly 800,000 employees have claimed the tax relief for working from home during the pandemic.
Eligible employees can clai m a full year’s entitlement where they have been instructed to work from home by their employer, even in scenarios where they have only worked from home for one day during the tax year. Any employees who have returned to the office to work since early April or who are due to return shortly are still able to claim the working from home tax relief for the entirety of tax year 2021-22.
Once an employee has successfully applied, and had their application approved, they will see an adjustment to their tax code which will mean that the tax relief is applied automatically to their salary.
The tax relief is available on £6 a week. Eligible employees will receive tax relief based on the tax bracket that they sit within. For a 40% taxpayer, for example, they would receive 40% of £6, so £2.40 per week towards the cost of their household bills.
Individuals who worked from home due to the pandemic in tax year 2020-21, but who did not claim for the tax relief, still have the opportunity to do so as HMRC will accept backdated claims for up to four years.
Claims can be made via the online portal here, but agents must not use the portal to claim on behalf of their clients.
CIPP comment
Although the working from home tax relief is available for the duration of 2021-22, what will happen beyond that point? As many businesses seem set to embrace hybrid working in the future, how will the tax relief be apportioned for those working between home and the office? Send your thoughts and views through to the Policy team, at Policy@cipp.org.uk.
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HMRC’s approach to debt collection upon emerging from the pandemic 1 July 2021
HMRC has released a policy paper, which discusses how HMRC will approach collecting debts as the country emerges from the pandemic.
As economic activity recommences, HMRC will resume its debt collection work. This will involve, amongst other things, contacting individuals and businesses that have fallen behind on their tax payments. The resounding message is that those who can pay their taxes should do so, but where there is financial difficulty, HMRC will work alongside them to agree a plan based on their financial position. HMRC will contact those with tax debts either by phone, post, or text message to discuss the situation. Anyone who receives these communications is encouraged to respond as soon as possible, so that HMRC can clarify whether additional support is required or if an individual or business is refusing to pay. HMRC offers a payment plan, called Time to Pay, which allows those in debt to pay what is owed in a series of affordable instalments. In scenarios where customers cannot pay anything straight away, HMRC may be able to offer a short-term deferral. This would mean that no funds are taken in an agreed set period, with no additional action taken until that time has passed.
More information regarding payment arrangements (Time to pay) is available online.
In scenarios where communications of this nature are not responded to, HMRC may visit home or business addresses. The majority of these visits allow HMRC to work with individuals or businesses to agree on an action plan for settling their debt. As of September 2021, however, where there is refusal to discuss a payment plan or communications are
The Chartered Institute of Payroll Professionals
Payroll: need to know
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