The Chartered Institute of Payroll Professionals
News On Line
With just two weeks to make the switch and inform HMRC, if you know of any employees that this may impact, now is the time to act.
Back to contents
£6 a week tax relief for working from home for 2022/23 22 March 2022
The CIPP has received confirmation from Her Majesty’s Revenue and Customs (HMRC) that the time easement for claiming tax relief for working from home expenses will end in April 2023. The easement, that allows tax relief to be claimed for the whole tax year if someone is eligible to claim extra costs for working from home for any time during the year, are to remain in place for 2022/23. HMRC expects significantly fewer claims however, as the tests have not been relaxed. As a reminder, the household expenses must have been incurred wholly, exclusively and necessarily in the performance of the duties of the employment. With no legal requirement to work from home, it’s unlikely that many hybrid workers will qualify for the relief. If more lockdowns or work from home mandates are implemented in the tax year, this could become relevant once again.
The qualifying tests, as laid out in the Employment Income Manual, will remain the same as they have done previously. This does not affect the £6 per week tax-free payment that can be made by an employer to an employee.
There is a useful example (example 12) regarding claiming tax relief when working from home here and further guidance here.
Back to contents
New P87 form for claiming tax-relief on work-related expenses 29 March 2022
HM Revenue and Customs (HMRC) has released a new form for P87 claims which will enable them to standardise and streamline the claims process.
The form allows for multiple tax years and multiple employments to be included in a single claim. It will allow HMRC to achieve more automation, creating greater efficiency and allowing claimants to receive renumeration more quickly.
The form can be used already but will be mandatory from 7 May 2022. Any claims made on after this date will be rejected unless the new form is used. The only exception is that people who have made expenses in previous years can claim by phone, if the expenses are less than £1000 or less than £2,500 for professional fees and subscriptions.
The form will also include information about a nomination which will allow HMRC to process repayments to nominated payees faster and with less manual intervention.
Back to contents
Increase in National living wage from 1 April 31 March 2022
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 143 of 220
Made with FlippingBook - Online magazine maker