It was value as a lot as £124 to some employees
Chancellor of the Exchequer Rachel Reeves axed the allowance (Picture: Leon Neal, Getty Pictures) The most recent politics information – straight from our group in Westminster and extra Subscribe Invalid e mail
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Must know: 300,000 dwelling employees to lose tax aid in April shake-up
- Roughly 300,000 UK dwelling employees will lose their annual tax aid allowance from April 6, dealing a monetary blow to distant workers throughout Britain.
- The scrapping of this long-standing measure will save HMRC £115 million over 5 years, in accordance with analysis by accountancy agency Azets. Fundamental price taxpayers face a £62 annual tax enhance, whereas increased price taxpayers will see payments rise by £124.
- Clair Williams, head of employment tax at Azets, warned the withdrawal may show “a monetary shock to quite a few folks” who declare aid on family bills like heating and electrical energy. She mentioned: “This tax aid, in place for a few years, covers an estimated 300,000 individuals who incur extra family bills.”
- The aid was expanded through the pandemic to assist workers compelled to make money working from home, permitting claims of as much as £6 per week with out receipts. Chancellor Rachel Reeves introduced the scrapping in final 12 months’s Autumn Finances, although Williams famous it “maybe fell by way of the cracks of common consciousness.”
- Employers can nonetheless reimburse workers for dwelling working prices with out tax implications, however Williams warned this shifts accountability to the non-public sector. She cautioned: “Citing issues about non-compliance, which is shorthand for pretend claims, the federal government is shifting the price accountability to the non-public sector.”
- Employees can nonetheless declare aid for the present tax 12 months 2025-2026 and retrospectively for as much as 4 earlier years. The deadline for 2021-22 claims is April 5, 2026.
- Williams concluded the change “may effectively imply administrative complications for companies and a monetary hit to WFH workers.”
READ THE FULL STORY: Reeves HMRC rule change means 300,000 in UK lose tax allowance from Monday
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