Entrepreneurs risk prosecution for incorrectly claiming government WFH support

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Hi Dan,

Work from home tax relief rules are changing this month, so homeworkers and entrepreneurs may risk being prosecuted if they incorrectly claim this support. Lauren Harvey, assistant accounts manager at The Accountancy Partnership, is urging those who work from home to check their eligibility as soon as possible so they don’t fall foul of the new rules.

Please see the full comment below, and do let me know if you have any further queries?

Thanks,

Emily

Entrepreneurs risk prosecution for incorrectly claiming government WFH support

Following tax relief rules change this month, entrepreneurs now risk being prosecuted if they incorrectly claim government support for help with their gas, electricity, water, broadband and phone bills, while working from home. Business finances experts are urging SME owners to check their eligibility as soon as possible to avoid falling foul of the new rules.

Lauren Harvey, assistant accounts manager at The Accountancy Partnership, said: “Government guidance has now changed for those working from home and as a result, it has also withdrawn the financial support offered to many home workers. This could put many entrepreneurs in a difficult financial position as inflation and the cost of business continues to rise. Many entrepreneurs are facing a hike in utility bills and other costs associated with running a business, and the withdrawal of this support or being penalised for an incorrect claim could put some people out of business.

“Now only those that have no choice but to work from home can claim the tax relief, worth as much as £300 per year. If your business has an office or premises the relief no longer applies. However, if the premises are ‘an unreasonable distance’ for you to travel on a daily basis you may still claim. With this criteria in mind business owners and employers should clarify their eligibility before submitting an incorrect claim. Anyone unsure whether they qualify should seek support from an accounting professional.”