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It’s Self Assessment time again – why use an accountant for your tax return?

09 November 2021 •

In the last 18 months many of us have learnt a new way to work – from home. What home workers may might not realise is that this could entitle them to a tax rebate of up to £140, provided the correct conditions are met.

Chartered accountant David Collins is a specialist charted tax advisor at Fulham based Warrener Stewart. He has been reviewing what tax relief his private clients can claim for the tax year that spanned the three lockdowns.  

Tax preparation

“At this time of year, we always start the process of gathering information to complete a self-assessment tax return for many of our clients,” says David. “This year because of the pandemic I will be checking to see if my clients are able to claim working from home tax relief for the last tax year 2020/21.”

The tax relief is relatively easy to claim notes David. “There is a flat rate of £6 per week which anyone who was instructed by their employer to work from home after 6 April 2020 can claim. There are two ways to claim the tax relief, either via your self assessment tax form or employees can apply directly via GOV.UK.”

One point to note cautions David, is that this tax relief will be subject to you being a taxpayer, so how much you receive depends upon the rate of income tax that you pay.

“A higher-rate taxpayer will ultimately receive a rebate of £125 since they would have paid tax at 40% on the £6. Whilst a basic-rate taxpayer receives just £62 since they obtain tax relief at 20%.  An additional rate tax payer will receive a tax reduction of £140 given that they pay tax at 45%.”

Despite this David still believes it is worth considering how long you worked at home for, since you can also apply for the tax relief in this current tax year, 2021/22 too.

“The tax relief was only recently increased from £4 to £6 – whilst it might not cover all your increased costs it is still worth applying for,” confirms David. “The tax relief is aimed at employees – for anyone who is self-employed there is also a fixed rate of deduction for using your home which is based on the hours used.”

Self assessment accountant

David and his tax colleagues at Warrener Stewart ensure they keep abreast of these and many other tax changes. They aim to save their clients valuable time and reduce the burden that comes with completing your tax return by yourself.

“At Warrener Stewart we offer a comprehensive and wide-ranging individual self-assessment service. We know how time consuming it can be to gather information - so our role is to prepare and complete the forms.

As part of our tax service, we will apply for tax reliefs that are sometimes overlooked, such as Gift Relief on any charitable donations, or private pension relief for those contributions paid from after taxed income. From now until the deadline at the end of January 2022 to submit a tax return, we will be busy helping our clients to be as tax efficient as possible.”

If you would like help and assistance with individual filing requirements contact the personal tax team at Warrener Stewart on 020 7731 6163.

“For the past 20 years Warrener Stewart has consistently given good advice... going above and beyond their remit.”
Theo Brehony - London Preparatory School Limited