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The great work from home tax swindle? HMRC urged to investigate

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The great work from home tax swindle? HMRC urged to investigate

Chris Etherington, of tax specialists RSM, said HMRC needed to overhaul how it checks who is eligible, saying the relief was costing taxpayers too much.

He said: “HMRC has created an issue of their own making, as many people claiming probably do not qualify for this relief anymore – the tax office needs to address its internal processes as a matter of urgency.

“It is hit and miss. We have clients who still have the tax relief code on their PAYE slips and are getting the tax break because they claimed it during the pandemic, but they are back in the office now.

“Many people are still benefiting from this relief, and it is costing the Exchequer millions of pounds.”
James Vitali, of the think tank Policy Exchange, said: “When it comes to tax relief, it should not be the case that those working remotely should benefit disproportionately.”

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The tax relief scheme for home workers has been in place since 2003 and is designed to help with the extra costs related to working from home, including electricity, gas, and internet bills.

HMRC made it easier to claim in the pandemic, when lockdowns meant workers were forced to work from home.

This change led to almost six million people claiming the relief between 2020 and April this year, at a cost of around £500m to the taxpayer, up from 22,000 workers who claimed the relief each year before the rules were eased. 

HMRC announced last April the end of the easement. 

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Criticism of HMRC and home working relief comes as many tax office staff continue to work from home themselves. 

On average, only 47pc of the tax man’s staff were working in the office in June, according to HMRC data. Last February, the percentage of staff in the office was as low as 11pc one week.

Data published in July showed that Britain is the working-from-home capital of Europe.

An HMRC spokesman said the tax office expects the number of people claiming the relief to continue to be higher than before the pandemic.

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CryptoCurrency

Coinbase’s cbBTC surges to third-largest wrapped BTC token in just one week

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Coinbase’s cbBTC surges to third-largest wrapped BTC token in just one week


According to data from CryptoQuant, cbBTC circulation supply has outpaced long-established players seven days after launch. 



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Bitcoin options markets reduce risk hedges — Are new range highs in sight?

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Bitcoin options markets reduce risk hedges — Are new range highs in sight?


Bitcoin options market positioning shifted as BTC price shot through the $60,000 to $63,000 level. 



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Ethereum is a 'contrarian bet' into 2025, says Bitwise exec 

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Ethereum is a 'contrarian bet' into 2025, says Bitwise exec 


Ether price could be on track for another correction into a triple-bottom, marking the beginning of a big rally into 2025.



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Blockdaemon mulls 2026 IPO: Report

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Blockdaemon mulls 2026 IPO: Report


Other Web3 infrastructure platforms, such as Circle, are also mulling IPOs.



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SEC asks court for four months to produce documents for Coinbase

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SEC asks court for four months to produce documents for Coinbase


The financial regulator requested an extension until February 2025 to review “at least 133,582 unique documents” as part of discovery motions with Coinbase.



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‘Silly’ to shade Ethereum, the ‘Microsoft of blockchains’ — Bitwise exec

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‘Silly’ to shade Ethereum, the ‘Microsoft of blockchains’ — Bitwise exec


Ethereum is still home to the most active crypto developers and is the most attractive chain to build applications on top of for big companies, argues Bitwise’s Matt Hougan.



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