Tax relief working from home: How to claim Income Tax allowance from Gov UK
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Martin Lewis has exposed a new tax relief deal for those of us who are still working from home due to the coronavirus pandemic. On Thursday, the popular money guru revealed to watchers of The Martin Lewis Money Show how they can claim tax relief simply for not going into the office. The little known tax relief could save workers a sizable chunk of money over a long period.
He said: “If you’re required to work from home and you have extra expenses for doing so and you’re an employee you can claim the working from home tax relief.”
Employees have had the process simplified by HMRC to make the claims process quicker, as many people have been in and out of working in the office throughout the coronavirus pandemic.
This means you can claim the relief even if you are only working at home part-time.
HMRC has said this week: “We recognise that the working-from-home situation is very fluid this year, so we’re accepting claims for the full year’s expenses.
“That includes even if people have only worked from home for some of the year, to avoid needing to contact us if you have to work from home again.”
As it currently stands, working from home is now advised by government’s across the UK, unless your job cannot be done from home.
So if you think you can claim, you can use the GOV.UK website to apply.
Who can claim tax relief for working from home?
Anyone who is an employee contract and required to work from home for at least one day since April 6, 2020 can now claim one year’s tax relief from the Government.
Claimants must be able to show they have accrued additional expenses on their household bills due to working from home, such as additional heating costs or internet costs.
They also must have been told to work from home by their employer or the Government – which encompasses a good chunk of the population thanks to COVID-19.
It doesn’t matter what job you work or what industry you are in – everyone who is working from home is eligible to claim.
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How much tax relief can you get?
You can claim £6 per week from the Government as a baseline rate.
If a claimant is on a basic taxpayer rate of 20 percent, they can save £1.20 a week, coming in at £62 per year.
If a claimant is in the higher taxpayer rate of 40 percent, they can save £2.40 per week – equating to £124.80 per year in saving.
If a claimant believes they have higher increased costs than £6 a week, they can claim more.
However, claimants will need evidence to provide evidence of the cost increases and be able to attribute these specifically to the fact you are working from home.
The relief is not given in cash – HMRC changes your tax code instead, meaning take-home pay goes up.
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