Author: Glenn

Employees who are working from home may be eligible to claim a tax deduction on certain work-related bills. If their employer does not cover these expenses or allowances, they can claim tax relief directly from HMRC.

You can claim tax relief if you are required to work from home, such as if your job requires you to live far from your office or if your employer does not have an office. However, tax relief is typically not available if you choose to work from home, even if your employment contract allows it or if your office is occasionally full.

Employees can claim tax relief of £6 per week (or £26 per month for those paid monthly) to cover additional costs of working from home without needing to keep specific records. The amount of tax relief you receive depends on your highest tax rate. For instance, if you pay the 20% basic rate of tax, you will receive £1.20 per week in tax relief (20% of £6). Alternatively, you can claim the exact amount of additional costs incurred, but you must provide evidence to HMRC. HMRC accepts backdated claims for up to four previous tax years.

You may also be eligible to claim tax relief for using your own vehicle, whether it’s a car, van, motorcycle, or bike. Generally, there is no tax relief for regular commuting to and from your usual workplace. However, the rules differ for temporary workplaces, where such expenses are typically allowable, or if you use your own vehicle for other business-related mileage. Additionally, you may be able to claim tax relief on equipment purchased for work, such as a laptop, chair, or mobile phone.

If you are an employee who is working from home, you may be able to claim tax relief for some of your bills that are related to your work. If your expenses or allowances are not paid by your employer, then you can claim tax relief directly from HMRC.

There is an online tool available on GOV.UK that allows taxpayers to check if they need to advise HMRC about additional income they receive. The online tool can be found at https://www.tax.service.gov.uk/guidance/check-non-paye-income/start/how-did-you-receive-additional-income

Additional income could be generated by:

• selling things, for example at car boot sales or auctions, or online;
• doing casual jobs such as gardening, food delivery or babysitting;
• charging other people for using your equipment or tools;
• renting out property or part of your home, including for holidays (for example, through an agency or online); or
• creating content online, for example on social media.

In most cases, these types of income are taxable. However, there are two separate annual £1,000 tax allowances available for property and trading income. If you receive either type of income listed (property or trading income), you can claim a £1,000 allowance for each. The online tool will help determine if this applies to you.

Where each respective allowance covers all the individual’s relevant income (before expenses) the income is tax-free and does not have to be declared. Taxpayers with higher amounts of income will have the choice, when calculating their taxable profits, of deducting the allowance from their receipts, instead of deducting the actual allowable expenses.

There is no requirement for employers to pay tax and National Insurance on certain health benefits covered by tax concessions or exemptions. For example, there is no requirement to report employees’ medical or dental treatment or insurance if they are a part of a salary sacrifice arrangement.

In addition, the following health benefits can be provided tax free:

• A maximum of one health-screening assessment and one medical check-up in any year.
• Eye tests required by health and safety legislation for employees who use a computer monitor or other type of screen.
• Glasses or contact lenses required by employees for working on computer monitors or other types of screen.
• Medical treatment for employees working overseas. The employer must have committed in advance to pay for this treatment or must pay the provider directly for the employee’s treatment or insurance.
• Medical treatment or insurance related to injuries or diseases that result from your employee’s work.
• Medical treatment to help an employee return to work. This allows the employer to pay up to £500 in costs for an employee to return to work.
• Any medical or dental treatment or insurance provided that is not exempt must be reported to HMRC. Employers may be required to deduct and pay tax and National Insurance on these amounts.

In the UK, certain business sectors are required to register with a regulatory body, such as HM Revenue & Customs (HMRC), for Anti-Money Laundering (AML) purposes. These sectors include:

1. Money Service Businesses (MSBs): This includes currency exchange offices, money transmission services, and cheque cashing businesses. MSBs are required to register with HMRC for AML supervision.
2. Estate Agents and Letting Agents: Estate agents involved in buying, selling, or letting property, especially transactions over a certain value, must register with HMRC. Letting agents also need to register if they facilitate transactions with monthly rents of €10,000 or more.
3. High-Value Dealers: Businesses that accept or make cash payments of €10,000 or more (or the equivalent in any currency) in a single transaction must register with HMRC. This category includes dealers in luxury goods, precious metals, and other high-value items.
4. Accountancy Service Providers (ASPs): This includes accountants, tax advisers, external auditors, and bookkeepers who offer accountancy services. These businesses must register with a relevant supervisory authority, such as HMRC, or a professional body like the Institute of Chartered Accountants.
5. Trust or Company Service Providers (TCSPs): Businesses that provide services related to the formation of companies, acting as company directors or secretaries, providing registered office addresses, or acting as trustees must register with HMRC.
6. Cryptoasset Exchange Providers and Custodian Wallet Providers: Businesses involved in exchanging cryptoassets or providing services for managing and storing cryptoassets (custodian wallets) must register with the Financial Conduct Authority (FCA) for AML purposes.
7. Art Market Participants: Businesses or individuals involved in the buying and selling of works of art, where the value of transactions (individually or cumulatively) amounts to €10,000 or more, must register with HMRC.
8. Bill Payment Service Providers and Telecommunications, Digital, and IT Payment Providers: Businesses that provide bill payment services or enable payments through digital or IT services must also register with HMRC for AML compliance.
9. Auctioneers and Dealers of Art or Antiques: Similar to high-value dealers, businesses in this sector must register if they manage transactions exceeding the €10,000 threshold.

These sectors are considered high-risk for money laundering and terrorist financing, and therefore, are required to register with an appropriate supervisory body to ensure compliance with the UK's AML regulations. Failure to register can lead to significant penalties, including fines and criminal prosecution.