This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
  • Delicious




New UK Service Offers Tax Refunds For Telecommuters

Jason Gorringe, Tax-news.com, London

19 September 2000

A new UK service at www.instanttaxrefund.co.uk offers a software package that will allow taxpayers to apply to the Inland Revenue for a tax refund if they incur expenses on behalf of their employer. The range of deductible expenses on which they may be due refunds is surprisingly wide: if a person

  • works from home 1 or more days per week
  • uses a personal car for employer's business
  • uses personal hardware, furniture etc. for employer's business
  • uses personal tools for employer's business
  • incurs travel or accommodation expenses on employer's business, or
  • incurs other costs eg:- Insurance, Stationery, Books, Telephone,
  • Professional Subscriptions

then in each case there is probably a deduction. The rules allow reclaims for six years back, so that a substantial reclaim may be possible if deductible expenses have been incurred over that period.

By 2004 it is estimated that 10% of employees (two million people) will work from home. Many of these already work from home one or two days per week. Very few of these employees realise that, by concession, the Inland Revenue will accept a tax relief claim for part use of their home for work. This only applies if it is necessary for the employee to work from home, not if he/she merely chooses to work from home but the Inland Revenue current practice is not to dispute small claims. It is important that no room is used solely for business to avoid capital gains tax complications.

Instanttaxrefund offers a software package for £39.95 which leads the user through a series of questions, then prepares a letter to the tax office in the appropriate format. The software was written by a Fellow of the Association of Chartered Certified Accountants and has been thoroughly reviewed by a Fellow of the Chartered Institute of Taxation.

David Kitley, Managing Director of Instant Tax Refund, says: 'Hundreds of thousands of people are entitled to these refunds. You do not have to fill in a self-assessment form, and the refunds can be huge.'

.

 

 






Write a comment