How to claim up to £140 a year if you’re working from home

Swathes of workers in the UK are operating from home instead of the office this year due to coronavirus restrictions.

And although you might have missed the water cooler and office banter, there might be some good news for you.

Money saving expert Martin Lewis has confirmed that employees who have worked from home can claim a tax relief.

You might be entitled to cash back even if you only spent one day working from the kitchen.

And it’s worth £62 or £124 – but you must have been told to work from home by your boss, you can’t submit a claim if you chose to do it.

According to MoneySavingExpert.com, if your employer required you to work from home, you are entitled to claim.

It’s due to increased costs, such as energy bills – at the going rate of £6 a week.

This can be paid by your employer, but given many are struggling right now, they might tell you to claim tax relief on this payment via HM Revenue & Customs (HMRC)d.

What this means is you don't pay any tax on this £6/week amount.

You can claim £1.20/week if you're a basic-rate (20%) taxpayer, £2.40/week if you're a higher-rate (40%) taxpayer, or £2.70/week if you're an additional-rate taxpayer (45%).

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That works out to either £62.40 for basic-rate taxpayers, £124.80 for higher-rate taxpayers, and £140.40 for additional-rate taxpayers per year.

To claim you must visit HMRC’s new working-from-home tool that automatically applies the tax relief via your tax code.

Anyone who hasn’t already put in a code is entitled to use it.

And you only have to claim once for the benefit to be added for the entire tax year.

You will need your Government Gateway ID to do so, which can be created as part of the process if you don’t already have one.

But anyone hoping for hard cash might be disappointed – it’s done via your tax code, meaning the saving comes off what you’d usually pay in your payslip.

You’ll take home more in your pay-packet as you’ll be paying less tax.

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